Goldman Sachs Offering ETH Fund To Clients• March 10, 2022 9:37 pm • Comments
According to regulatory documents that have been filed by the Securities and Exchange Commission (SEC), Goldman Sachs is offering an Ethereum fund to its clients.
The fund will be issued by Galaxy Digital which is the fund that the prominent investment bank allocates institutional capital to by acting as a feeder.
The fund so far has a total of 28 clients and a total assets under management value of over $50 million in the ETH fund and a total AUM at around $2.8 billion through arrangements with other banks besides Goldman Sachs.
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This recent news marks a continuation of interest that has been displayed by the firm as the bank had recently relaunched its crypto trading desk after a pause of three years.
scooplet: Goldman Sachs is offering Galaxy Digital's institutional ETH fund to clients in the mega-bank's latest crypto forayhttps://t.co/0XOLfBFTgU
— Danny Nelson (@realDannyNelson) March 8, 2022
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 expand through further strategic acquisitions, such as the tie-up with digital-asset management firms Vision Hill Group Inc and Bitgo in the last year.
Galaxy Digital has acted as a path that is bringing together financial companies and also 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.
This is not the first time that Goldman Sachs has partnered with funds like Galaxy digital in order to gain access to the crypto markets.
It had already offered Bitcoin futures to its clients through CME Group Bitcoin futures and this new addition would add to its existing crypto services portfolio.
Goldman employees have also displayed particular interest in the space which may give some clues to investors on what the institutional giant plans to do in the future.
For example, Goldman executive Roger Bartlett had left the firm in order to join Coinbase and follows a long list of executives from traditional firms that have done the same.
Goldman and Galaxy Digital have partnered up again to give Goldman’s clients access to Galaxy’s ETH Fund. The partnership was revealed in an SEC filing which listed Goldman as a recipient of introduction fees. https://t.co/xXP5hpvpEl
— Cointelegraph (@Cointelegraph) March 9, 2022
CoinTelegraph shares details:
Goldman’s employees are also increasingly keen on the crypto space. On Feb. 25, Goldman executive Roger Bartlett announced that he was leaving the traditional financial firm to settle at Coinbase crypto exchange.
He will lead global financial operations to, as he said in a LinkedIn post to “embrace opportunities offered by digital assets and its ecosystem.”
Senior chairman at Goldman Sachs Lloyd Blankfein also shares a curiosity about the crypto space.
He tweeted on Monday his wonder at how cryptocurrency was not “having a moment” now in light of extremely high inflation rates and individual bank accounts being frozen around the world.
Right now, Galaxy Digital is specifically focused on Ethereum, but it may only be a matter of time before other prominent cryptocurrencies like XRP and ADA be added to the portfolio.
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