Goldman Sachs’ Bogus DeFi ETF Enrages Crypto Twitter

27/07/2021
DeFi, News

A new DeFi exchange-traded fund, especially from an institution as reputed as Goldman Sachs, should have been good news for the decentralized finance sector and crypto industry in general. However, the news of the Goldman Sachs Innovate DeFi And Blockchain Equity ETF has had quite the opposite effect in the community.

Table of Contents

“DeFi Fund” Or Publicity Stunt?

According to reports, the prominent Wall Street establishment has filed for an exchange-traded fund to track major stocks on the Decentralized Finance and Blockchain Index from the German-based financial indices provider, Solactive. According to their filing with the SEC, the fund will be tied to the performance of companies working on blockchain technology and the digitization of finance.

However, the top stocks included in Solactive’s DeFi index featured Nokia, Facebook, Google, Accenture, and Fujitsu, all of which are not mainstream DeFi or crypto-native companies. The index also includes stocks of companies like PayPal, Microsoft, Visa, and Overstock, as well as China’s Alibaba, Tencent, and Baidu.

The filing indicates that Goldman Sachs is trying to work around alternative routes to tap into the DeFi craze and get more exposure in this rapidly growing industry. Furthermore, this is a massive disappointment for crypto fans as none of the products offered in the GS ETF currently offer crypto-native DeFi index products.

Bankless Team Slams Wall Street Bank

The team at Bankless had quite a lot to say about this matter. The company focuses on creating a decentralized community driving adoption and awareness of bankless money systems like Ethereum, Bitcoin, and DeFi. The editor at Bankless, Lucas Campbell, commented,

“Goldman Sachs launching a blockchain and DeFi ETF that doesn’t actually feature any blockchain or DeFi (?) companies.”

In response, the company’s co-founder, David Hoffman, retweeted the above and commented about how Goldman Sachs had launched a “DeFi ETF” (that included zero DeFi tokens, the same week that his company launched the $BED index.

Industry Leaders Unhappy With Fake DeFi ETF

Hoffman is not the only prominent figure in crypto to call out Goldman Sachs on Twitter. He is joined by Charlie Shrem, a man who wears many crypto hats. Co-founder of the Bitcoin Foundation and the former BTC exchange BitInstant, Shrem also hosts his podcast Untold Stories. Shrem discussed this matter on his Twitter, saying,

“Goldman Sachs’s “DeFi” Fund contains only legacy companies and has 0 crypto-native companies. They’re trying to deceive the public into thinking we already have decentralized finance.”

Anonymous DeFi proponent, who goes by Chainlink God, has also criticized the move by the conglomerate, saying”