Goldman Sachs has filed with the SEC to register a new investment product that tracks bitcoin ETF data from ARK Innovation. This will provide the bank’s clients with indirect access to bitcoin.
In recent years, the US Securities and Exchange Commission (SEC) has repeatedly rejected applications from many companies wishing to register a tradable exchange-traded fund (ETF) for Bitcoin or Ether. The regulator refers to excessive manipulation in the cryptocurrency market, due to which investors may be at great risk. The Commission has yet to approve a single ETF launch application, while three bitcoin ETFs have already been launched in Canada this year.
So Goldman Sachs found a way out by introducing ARK Innovation’s Bitcoin ETF tracking product. The bank plans
offer automatically callable $ 15.7 million contingent coupon bonds linked to ETFs maturing in 2026. The bond payout will depend on the effectiveness of the ARK Innovation ETF. The bank’s clients will be able to access the first cryptocurrency, but not directly, but indirectly. This is another way that investment bank Goldman Sachs is trying to implement digital asset management, as the bank recently announced an increased interest from its clients in bitcoin.
The bank used to be skeptical about it and refused to consider cryptocurrencies as an asset class. However, it recently became known that Goldman Sachs intends to reopen the platform for trading Bitcoin futures, following its abrupt closure in 2018. Eric Balchunas, senior ETF analyst at Bloomberg, called Goldman Sachs’ new product a bet on large institutional clients.
However, according to a recent survey by JPMorgan Bank, most institutional investors are not planning to invest in bitcoin and other digital assets.
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