Goldman Sachs requests Bitcoin-linked investment product

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Goldman Sachs requests Bitcoin-linked investment product


In the letter

  • Goldman Sachs has filed with the SEC for a new investment product.
  • The product (a linked note) will follow the ETF ARK Innovation.
  • The ARK Innovation ETF is invested in Grayscale, which means Goldman Sachs clients could be exposed to Bitcoin – indirectly.

Goldman Sachs, one of the world’s largest banks, has filed with the United States Securities and Exchange Commission for an investment product that could expose clients – indirectly – to Bitcoin.

The second deposit, which details a “tied note” (an income-generating product linked to a security or basket or securities, such as an ETF), indicates that investors could be exposed to a “disruptive innovation”.

Like linked note tracks Innovation ARK, an exchange-traded fund (ETF) invested in the Grayscale Bitcoin Investment Trust Grayscale, investors could be exposed to the largest digital asset, but not directly.

For those who don’t know: An ETF allows investors to continuously buy and sell stocks throughout the day that represent the value of an underlying asset.

A Bitcoin ETF, which would allow investors to buy stocks that represent the digital asset, does not yet exist in the United States. Many companies have tried to launch one, including investment giant Fidelity, which just filed its application today. The SEC has been hesitant to approve these products in the past, however, citing concerns about the manipulation of the Bitcoin market.

Most Bitcoin ETFs exist elsewhere – in Canada (where they were huge success) and Bermuda.

Goldman’s filing, dated March 19, is not for an ETF, but a product that would follow an ETF exposé to Bitcoin stocks.

And that’s another way Goldman Sachs is showing its interest in Bitcoin.

The bank was previously skeptical of the coin. Last year he refuse Bitcoin was an asset class. But he has since mentionned it will start trading Bitcoin futures, reopening its cryptocurrency trading desk after abruptly shutting it down in 2018.

Bloomberg ETF analyst Eric BalchunasIt said Decrypt that Goldman’s new Bitcoin-linked product is “like a side bet for its larger institutional clients.”

“The bet has all kinds of different parts, but it all involves riffing the price of ARKK, hence the word ‘ETF’ in there,” he said.

As the SEC filing says: “The ETF may be exposed to cryptocurrency, such as Bitcoin, indirectly through an investment in a grantor trust. The ETF’s exposure to cryptocurrency can change over time and therefore this exposure may not always be represented in the ETF’s portfolio. “

Goldman Sachs did not immediately respond to Decryptrequest for comment from.

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