Yesterday Goldman Sachs filed an application with the SEC to create a new 'DeFi" ETF. The filing says that the ETF would be centered around two key themes, "Blockchain Technology and the Digitalization of Finance."

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But Goldman says the ETF would track the Solactive Decentralized Finance and Blockchain Index, which has almost nothing to do with blockchain or the DeFi ecosystems seen on Ethereum or the Binance Smart Chain. 

Solactive's "Decentralized Finance and Blockchain Index" does not hold any assets related to DeFi. Instead, it has a seemingly random combination of stocks from areas like fintech, social media, tech and more.

In the filing, Goldman says that the new ETF would invest "at least 80% of its assets (exclusive of collateral held from securities lending) in securities included in its underlying index (the Solactive index)."

The only stock that has anything to do with cryptocurrency in Solactive's index is PayPal. PayPal allows users to buy and sell cryptocurrency, but it has nothing to do with decentralized finance. 

There has been growing interest for investment in the DeFi space and many investors may have been searching for an easy traditional asset like an ETF to gain exposure. 

Those interested in such an investment vehicle should be disappointed to find that Goldman's new proposal carries no exposure to DeFi at all, given the underlying assets. 

It's unclear if Goldman has a misunderstanding of what DeFi is, if they have a totally different definition of the term or if they are just trying to use the title of DeFi for its current popularity. 

This story is developing.