Goldman Sachs will be offering its clients access to Ethereum Funds through Galaxy Digital’s Institutional Ethereum Fund. This was reported from the regulatory documents filed with the U.S Securities and Exchange Commission (SEC).
The SEC also displayed that it had listed Goldman Sachs as a beneficiary of the charges that are required to be borne for letting clients have access to the Ethereum Fund. In this strategy, Goldman Sachs will get an introduction fee for referring clients to Galaxy’s institutional Ethereum Fund, according to the recent SEC filing.
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Through minimal funding and investment size of $250,000, the 12-month old fund has generated more than $50 million in gross sales for 28 buyers, according to the filing. There is ambiguity regarding flows if any, that is related to Goldman Sachs considering the investment bank wasn’t involved during the inception of the fund.
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Key Takeaways From This Alliance
Galaxy Digital Holdings Ltd is a U.S operated crypto-based financial provider which was founded by Mike Novogratz. Galaxy Digital at the moment is responsible for providing liquidity to Goldman’s Bitcoin Future’s trade. This digital blockchain investment company also has a similar arrangement with Morgan Stanley clients.
A year ago, Galaxy Digital announced that it would launch a suite of Ethereum funds, which included this particular institutional offering.
Additionally, CAIS Capital LLC, an independent wealth management firm was also listed as a recipient of “placement fee” which is a referral fee for clients to jump into Galaxy’s ETH Fund. CAIS also has been separately involved in a different Galaxy-backed Ethereum Fund with a filing reported on March 8.
Goldman Sachs relaunched the crypto trading desk within its Global Currencies and Emerging Markets division after a gap of three years. Goldman’s strategy with Galaxy will give investors exposure to Ethereum as a physical asset and not a derivative-based product like futures contracts.
Galaxy Digital has continued to through strategic acquisitions, such as the tie-up with digital-asset management firms Vision Hill Group Inc, Bitgo in the last year. Galaxy has positioned itself as a path bringing together financial companies and facilitating direct crypto investments.
Banks are a regulated sector that cannot pump money into the cryptocurrency field instantly, it is when organizations such as Galaxy Digital come into play as they have successfully managed to bridge the existing gap as mentioned above.
Additionally, Goldman Sachs has also continued to display interest in the cryptocurrency field as it continues to progress and evolve. Roger Bartlett, the executive director at Goldman Sachs quit the organization in February and has reportedly joined crypto exchange Coinbase.
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