- Galaxy’s ETH fund was not related to Goldman when it first began.
- The fund had 28 customers and over $50 million in invested assets at the filing.
Public filings with week with the Securities and Exchange Commission (SEC) revealed that Goldman Sachs aims to provide its biggest banking customer’s access to Ethereum’s digital token Ether (ETH) through third-party issuance by Galaxy Digital. Goldman Sachs is hardly the first financial institution to make a push into cryptocurrency investments. For example, Goldman Sachs teamed up with Galaxy Digital to establish and handle the investment banking firm’s Bitcoin futures earlier this year.
Over $50 Million Already Invested
With an initial commitment of at least $250,000 required to join the “Galaxy Institutional Ethereum Fund,” the fund is only open to institutional investors. According to the SEC filings, the fund had 28 customers and over $50 million in invested assets at the filing. Galaxy’s ETH fund was not related to Goldman when it first began. Still, the filing highlighted that Goldman would collect an unknown amount as a finder’s fee for accounts it directs to Galaxy going forward as a referral fee for them.
The filing stated:
“Goldman Sachs & Co. LLC will receive an introduction fee with respect to certain clients introduced to Issuer; CAIS Capital LLC will receive certain placement fees with respect to clients referred to Issuer, each as disclosed to their applicable clients.”
Earlier this month, the investment bank also revealed that it would be launching Bitcoin options on the over-the-counter market. There have been other attempts, but none have been as successful as Galaxy Digitals in offering cryptocurrencies to significant clientele. In November, a VanEck proposal for a Bitcoin ETF, which would have held the real cryptocurrency rather than merely Bitcoin futures, was denied by the SEC. Instead, it was proposed in March to acquire Bitcoin on the “spot” market and store it in an ETF that investors could later purchase.
