According to regulatory documents filed with the US Securities and Exchange Commission (SEC) on Tuesday, Goldman Sachs (GS) is offering interested clients access to an ether (ETH) fund established by Galaxy Digital.
A source in the institutional crypto trading industry verified that Goldman is a feeder to the Galaxy fund.
According to the updated Form D filing, “Goldman Sachs & Co. LLC will receive an introduction fee” for clients it refers to the “Galaxy Institutional Ethereum Fund.” Galaxy launched that fund in March of last year.
According to records, the company has sold more than $50 million to 28 clients with a $250,000 minimum commitment. It’s difficult to estimate how much, if any, flow Goldman is responsible for because it wasn’t participating when it originally debuted.
This is not Goldman Sachs’ first collaboration with Galaxy Digital, the crypto investment business led by Mike Novogratz. Galaxy agreed in June to provide liquidity to Goldman Sachs’ bitcoin (BTC) futures offering.
A check of the documents reveals that Galaxy offers a bitcoin fund to Morgan Stanley (MS) clients in a similar arrangement to this one with Goldman.
According to the SEC filing, CAIS Capital LLC, an alternative investment platform, will get “placement fees” for recommending clients to the institutional fund. It’s also involved in another Galaxy-backed Ethereum fund, which filed on Tuesday.
A spokesperson for Goldman Sachs did not respond immediately. A Galaxy Digital representative declined to comment.