As the popularity of Bitcoin increases, many banks and firms are filing for a new Bitcoin ETF. And according to an SEC document, it seems that even Goldman Sachs has also filed for a new ETF, having Bitcoin as an option. The ETF also takes into account other Bitcoin applications and blockchain-related technologies. The filing of the bank with the US security exchange and commission will offer $15.7 million in autocallable ETF linked notes due 2026. The notes payout will depend on the performance of ARK Innovative ETF owned by ARK Investment management.
More about the new Bitcoin ETF
The ARK Innovate ETF provides the option of Bitcoin exposure to companies that are working on a blockchain or similar technology. The filing says that this exposure can be provided by investing in a grantor trust. Many other components of the ETF were also clearly explained in the note. This helps in having a clear understanding of what the ETF is, and if it’s for you. One more important thing that you should also know about Goldman Sachs’s new ETF is the presence of Bitcoin.
This new ETF is a bold take on making Bitcoin a substantial part of the financial sector of today’s world. To bring about the presence of Bitcoin in the ETF, they invested in a trust that invests in Bitcoin. Though this is not direct, it is surely a great way to bring exposure. The SEC filing also said that the exposure of the ETF could vary with time and might not be necessarily revealed in the portfolio.
The filing of the new ETF also goes in line with the Goldman Sachs statement saying that the demand for crypto is rising. They have seen increased adoption of cryptocurreny among their clients. And so the fact that the new ETF has exposure to Bitcoin could attract a lot of investors. Other than the exposure of Bitcoin, 65% of the funds will be put into domestic and foreign equity securities that meet their requirements.
A step forward!
Goldman Sachs is one of the biggest banks in the US. And it giving users the option to invest in crypto assets like Bitcoin directly or indirectly is great. This move will make sure that the bank doesn’t stay behind in terms of the adoption of the tech. At the same time, investors also have a good enough way that lets them invest in the cryptocurrency without any hassle. ETFs are generally meant to be a hassle-free of investment into a diversified portfolio. With this new ETF, there are now more than five pending ones at the SEC for approval. One of the biggest hindrances of approval comes because of the exposure to Bitcoin which is unregulated. So, we have to wait and see if this one gets approved.
What are your thoughts on the new Bitcoin ETF? And will you be interested in investing in one or will you prefer to do it directly? Let us know in the comments below. Also, if you found our content informative do like it and share it with your friends.
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