Clients at Goldman Sachs (GS) are keen on the spot exposure to the Ethereum funds and are offered a space in the ETH Fund of Galaxy Digital. The strategy brought about by the GS had become apparent on Tuesday when the Securities and Exchange Commission filed a new case and listed GS as a beneficiary of introduction charges for introducing clients to the ETH funds.
Galaxy Digital is Mike Novogratz, the billionaire’s crypto-based financial service provider. The company controlled about $2.8 billion worth of crypto AUM (assets under management) by the end of quarter 4 of 2021.
What number of Goldman clients had brought is still not clear, but the minimum investment was $250,000 per investor. This filing also stated that the Ether Fund of Galaxy Digital had witnessed sales of more than $50.5 million ever since its inception.
CAIS Capital, the autonomous wealth management company, was listed as well on the filing as a beneficiary of placement charges for referring the company’s clients to the ETH Fund of Galaxy. Note that both the introduction and placement fees of Goldman and CAIS, respectively, have not been revealed.
Prior to this partnership with Galaxy Digital, Goldman had partnered with several other companies. In June 2021, Goldman started offering BTC (Bitcoin) futures trading through CME Group BTC futures, where Galaxy provided liquidity.
Goldman employees have also become increasingly interested in these crypto ventures. On 25th February, Roger Barlett, Goldman executive, made an exclusive announcement that he was departing from the conventional financial firm in order to settle at the then-new Coinbase cryptocurrency exchange.
He plans to lead the global operations in finances to embrace more opportunities that come from digital assets and the crypto blockchain ecosystem.
Lloyd Blankfein, Goldman’s Senior Chairman, had also shared his curiosity about the same. In a tweet on Monday, he wondered how crypto was not getting the limelight in times of exceedingly high rates of inflation and when banks are freezing accounts all around the globe.
With a minimum investment of $250,000, the ETH Fund had sold more than $50 mn to about 28 clients.