Goldman Sachs Began to Provide ETH Funds to Clients Through Galaxy Digital
Goldman Sachs said in the document that it would provide customers with the risk of Galaxy digital Ethereum fund, which in turn would receive an introduction fee.
On Tuesday, March 8, Wall Street banking giant Goldman Sachs submitted regulatory documents to the U.S. Securities and Exchange Commission (SEC) to provide its clients with ether (ETH) funds through Galaxy digital.
This is another move by Goldman Sachs to show its affinity for cryptocurrency products. Galaxy digital launched the ether (ETH) fund in March 2021 last year. The amended form d document states that “Goldman Sachs & Co. LLC will receive an introduction fee” to promote the Ethereum fund to its customers.
So far, Galaxy Ethereum fund has sold more than $50 million to 28 customers. The minimum investment of the fund remains at $250000. It is difficult to explain part of Goldman’s contribution to the fund’s growth.
Galaxy digital, operated by Mike Novorgtaz, a former Goldman Sachs boss, has brought some cryptocurrency funds to the market. The company’s greater focus is to bring more institutional participants into the cryptocurrency market.
This is not the first time Goldman Sachs has cooperated with Galaxy digital. Previously, Galaxy digital also agreed to provide liquidity for Goldman Sachs’ bitcoin futures products. In a similar arrangement with Goldman Sachs, Galaxy digital also provides bitcoin funds to Morgan Stanley customers.
Goldman Sachs and Cryptocurrency
Banking giant Goldman Sachs has been keen to explore opportunities in the field of cryptocurrency. The banking giant also believes that Ethereum is a potential inflation hedge tool, which is likely to reach the level of $8000.
Last December, Goldman Sachs also asked to launch more cryptocurrency options market. It said there was a growing demand for “more derivatives type hedging”. So far, it is uncertain whether Goldman Sachs will make a big show on such products. It is expected that as the market matures, Goldman Sachs will provide more cryptocurrency funds.