Alternative Investments/Digital: Goldman Sachs Offers Proxy Exposure To Cryptos Via “ETF-Linked” Notes

https://dailyalts.com/wp-content/uploads/2021/03/CathiwWood-ARK.jpg

The notes will be linked to Cathie Wood’s (pictured above) ARK Innovation ETF.

Goldman Sachs (NYSE: GS) plans to offer notes linked to the performance of the ARK Innovation ETF, an actively managed fund by Cathie Wood’s ARK Investment Management. The $ 15.7 million Auto-callable Contingent Coupon ETF-linked notes are due 2026. (CoinDesk)

Goldman Sachs’ proxy exposure to cryptos

According to ETF analyst Eric Balchunas, Goldman Sachs’ new bitcoin-linked product is “like a side bet for its bigger institutional clients.”

However, the filing provides that ETF may also have exposure to cryptocurrency, such as bitcoin, indirectly through an investment in a grantor trust.

It may be noted that the ARK Innovation ETF is invested in the Grayscale Bitcoin Investment Trust. ARK also provides exposure to companies that are a force for disruptive innovation and are at the forefront of cutting-edge technologies such as the blockchain.

Earlier this month, JPMorgan (NYSE: JPM) offered its clients a way to gain exposure to cryptocurrencies through a structured note offering that was tied to a basket of stocks related to those assets.

JPMorgan’s structured notes

The notes did not give direct exposure to the cryptocurrencies but instead were linked to a basket of 11 unequally weighted stocks that had their fortunes linked directly or indirectly to cryptos. (Forbes)

The move could be construed as a means to get around the nonavailability of a regular crypto-backed ETF, similar to the Goldman Sachs notes.

About 68% of the basket is accounted for by just four stocks, namely, MicroStrategy (NASDAQ: MSTR) (20%), Square (NYSE: SQ) (18%), Riot Blockchain (NASDAQ: RIOT) (15%), and NVIDIA Corporation (NASDAQ: NVDA) (15%).

Jack Tatar, managing partner of crypto venture firm Doyle Capital Management said JPMorgan’s notes could be considered a “gateway drug for investing in crypto.”

Related Story:  Scaramucci’s Skybridge Capital Files For A Bitcoin ETF

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/12/AMD_headquarters_santa_clara.624da707519a6.jpg
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…

https://dailyalts.com/wp-content/uploads/2023/12/RHCEU-Inline.jpg
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…

https://dailyalts.com/wp-content/uploads/2023/12/Samsung_UK_Samsung_Pay_Lifestyle_0552-revised-Pictogram-23.11.30-1024x744-1.png
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…

https://dailyalts.com/wp-content/uploads/2023/12/Revaia-founders.jpg
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…