The Goldman Sachs ETF would focus on Bitcoin and technology innovation companies. Fidelity Digital Assets would be in charge of the custody of the Bitcoin ETF.
The US Securities and Exchange Commission (SEC) received applications for permission to launch, separately, Bitcoin ETFs (exchange-traded funds). Investment management firm Fidelity Investments and major American bank Goldman Sachs were the ones that filed them with the US regulator.
Concerning Fidelity Investments, they assure that the Wise Origin Bitcoin Trust ETF will aim to track the performance of Bitcoin. They said that they will use the index of the Fidelity Bitcoin Index PR as a reference, according to an SEC document.
They explained that the index will take into account the Bitcoin prices on exchanges such as Bitstamp, Coinbase, Gemini, itBit, and Kraken. They added that the custodian of the fund would be Fidelity Digital Assets.
“The digital asset ecosystem has grown significantly, creating a more robust market for investors and accelerating demand among institutions,” a spokesperson for the firm reported.
Besides, he noted that many investors want access to Bitcoin as they need more diversified products offering exposure to digital assets.
A Major Bank Is Also Interested in Investing in Bitcoin
As for the Goldman Sachs bank, they also filed a request with the US regulator to start the operations of an ETF. Different from Fidelity, this fund aims to invest in Bitcoin, as well as in other areas including artificial intelligence and blockchain.
They clarify that the ETF can have indirect exposure to cryptocurrencies like Bitcoin, through an investment in a grantor trust. Given that they can reverse that action over time, such exposure might not always be represented in the ETF portfolio,” the document states.
The CEO of the bank, John Waldron, said that they wanted to satisfy their customers’ growing interest in cryptocurrencies.
The SEC document also indicates that the payment of the notes will depend on the performance of ARK Innovation, which ARK Investment manages. The latter firm distinguishes itself by investing in disruptive innovation companies.
ARK Investment has promoted the adoption of Bitcoin at the institutional level. In early March, its CEO and chief investment officer, Cathie Wood, said that Bitcoin and other cryptocurrencies could constitute 20% of institutional investors’ portfolios.
The SEC’s Possible Support for Bitcoin ETFs
Concerning the approval of Bitcoin ETFs, there have been opinions within the SEC suggesting the possible opening for these types of financial instruments.
In recent days, Hester Peirce, a member of the Commission, criticized the organization itself. She considers that too many requirements to Bitcoin ETF applicants “is unfair to [those] innovators”.
The official believes that regulators should promote clearer policies to make it easier for traditional financial institutions. In this way, they can “engage with cryptocurrencies with the confidence that they are meeting their regulatory obligations.”
The SEC recently recognized the request from investment manager VanEck for the issuance of its first Bitcoin ETF. The government agency has 35 days to approve, modify or reject what that document states. The support from the SEC for cryptocurrencies will allow more people to adopt these kinds of assets are here to stay.
By Alexander Salazar
