Goldman Sachs is partnering with Galaxy Digital to offer its clients an entryway into the crypto markets through an Ethereum fund issued by Galaxy Digital, according to regulatory documents filed with the U.S. Securities and Exchange Commission (SEC) on Tuesday.
The SEC document cited is a Form D filing which states “Goldman Sachs & Co. LLC will receive an introduction fee “for the clients it provides to the “Galaxy Institutional Ethereum Fund.” Galaxy Digital created and issued the Ethereum (ETH) fund last March. To date the Ethereum fund has 28 clients and over $50 million invested as per the filings. Goldman Sachs investors only recently gained access to the fund and it is unclear how much of the investment originated from their clientele.
Previously Goldman Sachs had partnered with Galaxy digital for a similar venture allowing their clients access to Galaxy Digital’s Bitcoin (BTC) futures offering. Galaxy Digital also offers a Bitcoin (BTC) fund through another prominent partnership to Morgan Stanley clients, according to SEC filings. Galaxy’s institutional Bitcoin fund was created in 2019 but only partnered with Morgan Stanley in April of last year.
What is Galaxy Digital
Galaxy Digital is a financial services and investment management company that provides direct clients as well as institutions with an collection of financial solutions in the digital asset industry. Galaxy Digital’s CEO and founder is Mike Novogratz, a former hedge fund manager who is well known in the crypto community as an outspoken bitcoin and crypto investor and advocate. Galaxy Digital controlled $2.8 billion in assets under management as of Q4 2021.
Goldman Sachs and Crypto
Goldman Sachs has now partnered with multiple crypto funds in order to provide its investors with the access they desire to the growing space. Goldman employees have increasingly shown interest in the crypto industry as well, last month executive Roger Bartlett stated he was leaving the bank to take a position at the Coinbase cryptocurrency exchange where he will lead global financial operations. Also Senior chairman Lloyd Blankfiend has shared his interest in the crypto markets and recently tweeted “Keeping an open mind about crypto..”