In the filing Goldman Sachs says that it will offer clients exposure to the Galaxy Digital Ethereum fund and in turn shall receive an introductory fee.
On Tuesday, March 8, Wall Street banking giant Goldman Sachs filed regulatory documents with the US Securities and Exchange Commission (SEC) for offering Ether (ETH) funds to its clients via Galaxy Digital.
This is yet another move from Goldman Sachs showing its affinity to crypto products. Galaxy Digital issued the Ether (ETH) fund last year in March 2021. The amended Form D filing notes that “Goldman Sachs & Co. LLC will receive an introduction fee” for pitching the Ether fund to its clients.
So far, the Galaxy Institutional Ethereum Fund has sold over $50 million to 28 clients. The minimum investment for the fund stays at $250,000. It’s difficult to explain Goldman’s part of the contribution to the growth of the fund.
Galaxy Digital, run by former Goldman Sachs veteran Mike Novorgtaz, has brought a number of crypto funds to the market. The company’s greater focus is to bring more institutional players into the crypto market.
This is also not the first time that Goldman Sachs has partnered with Galaxy Digital. Previously, Galaxy Digital also agreed to offer liquidity to Goldman Sachs Bitcoin futures offerings. In a similar arrangement to Goldman, Galaxy digital also offers a Bitcoin fund to Morgan Stanley clients.
Goldman Sachs And Crypto
Banking giant Goldman Sachs has been always keen on exploring opportunities in the crypto space. the banking giant also believes that Ethereum is a potential hedge against inflation and that it has the potential to touch $8,000 levels.
Recently, Senior chairman at Goldman Sachs Lloyd Blankfein shared his though on crypto concerning the current macro situation. He said:
“Keeping an open mind about crypto, but given the inflating US dollar and the stark reminder that governments can and will under certain circumstances freeze accounts and block payments, wouldn’t you think crypto would be having a moment now? Not seeing it in the price, so far….”
Last December, Goldman Sachs had also demanded more crypto options market. It said that there’s a growing demand for “more derivative-type hedging”. It isn’t sure so far whether Goldman will take a dive into these kinds of offerings. It is expected that Goldman will offer more crypto funds as the market matures.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
