Goldman Sachs would bring clients to Galaxy Digital's Institutional Ethereum Fund, as per documents filed with the Securities and Exchange Commission.
Financial services giant Goldman Sachs is offering clients access to an Ethereum (ETH) fund issued by Galaxy Digital, according to regulatory documents filed with the US Securities and Exchange Commission (SEC).
Clients of Goldman Sachs looking forward to Spot exposure to Ethereum, have been offered space in Galaxy’s ETH Fund. Galaxy Investments disclosed this strategy in a filing on Tuesday, which listed Goldman as a recipient of introduction fees for referring clients to the fund.
According to the amended Form D filing, ‘Goldman Sachs & Co. LLC will receive an introduction fee’ for clients it brings to the ‘Galaxy Institutional Ethereum Fund.’
Galaxy Digital Holdings Ltd is a US-based crypto-focused financial service provider founded by Mike Novogratz. The firm had $2.8 billion assets under management at the end of Q4 2021.
According to the filings, the Galaxy fund has managed to sell over $50 million to 28 clients, with a minimum investment of $250,000.
However, for now, it isn’t clear if Goldman had directed any investment since the investment bank was not involved when Galaxy Digital launched the fund.
Additionally, independent wealth management firm CAIS Capital was also listed on the filing as a recipient of ‘placement fees’ for referring its clients to Galaxy’s ETH Fund. CAIS is separately involved in a different Galaxy-backed Ethereum fund whose filing also came out on the same day.
However, Goldman’s introduction fee and CAIS’s placement fee remain undisclosed.
The recent partnership is not Goldman Sachs and Galaxy Digital’s first partnership. In June 2021, Goldman began offering Bitcoin (BTC) futures trading via CME Group Bitcoin Futures, with Galaxy Digital providing liquidity.
Notably, Goldman’s employees have shown interest in the evolving crypto space. On February 25, Roger Bartlett announced his exit from the traditional financial firm and joined crypto exchange Coinbase instead.
A Journalism post-graduate with a keen interest in emerging markets across South East Asia, Varuni’s interest lies in the Blockchain technology. As a financial journalist, she covers metric and data-driven stories with a tinge of commentary, and strongly believes in HODLing.