According to a recent filing in the US Securities and Exchange Commission (SEC), Goldman Sachs offers its customers access to Ether (ETH) via the Ethereum Fund of Galaxy Digital, a financial and investment services company focused on crypto.
Goldman Sachs and Galaxy Digital are teaming up again to assist former clients in obtaining more exposure to the crypto market. It is something Galaxy Digital excels at.
Clients of Goldman Sachs who want to invest in ETH on the spot have been given the position in Galaxy Digital’s ETH Fund. This tactic was revealed in a filing by Galaxy on Tuesday, in which Goldman was described as a recipient of introduction fees for recommending clients to the fund.
Goldman Sachs will be paid an introduction fee, as per the updated Form D filing. It is based on the clients it refers to Galaxy’s “Galaxy Institutional Ethereum Fund,” launched in March.
Galaxy Digital is founded by billionaire Michael Novogratz. The end of Q4 2021 had $2.8 billion in assets under management (AUM).
The actual amount purchased by Goldman clients is unknown. However, the minimum investment per investor is $250,000. Galaxy’s ETH Fund has made sales of more than $50.5 million since its start, according to the filing.
Goldman Sachs has already partnered with Galaxy Digital before. In a liquidity agreement, Galaxy Digital worked with Goldman Sachs. Since June 2021, the crypto company has been a liquidity source for Goldman’s bitcoin futures block trading.
According to the documents, Galaxy provides a bitcoin fund to Morgan Stanley (MS) clients in a similar arrangement to Goldman.
According to the SEC filing, CAIS Capital LLC, an alternative investment platform, would get “placement fees” for recommending customers to the institutional fund. It also participates in another Galaxy-backed Ethereum fund, which filed on Tuesday.
Employees at Goldman Sachs are also becoming more interested in cryptocurrency. For example, Goldman Sachs executive Roger Bartlett revealed on February 25 that he was quitting the traditional banking institution to join the Coinbase cryptocurrency exchange.
Lloyd Blankfein, the senior chairman of Goldman Sachs, is likewise intrigued by the crypto industry. But, in view of extraordinarily high inflation rates and individual bank accounts being blocked throughout the world, he wondered on Monday why crypto was not “having a moment.”
The Goldman Sachs Group, Inc. is a New York-based American global investment bank and financial services firm. Investment banking, asset and investment management, securities underwriting, and prime brokerage are all services provided by the company.