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Goldman Sachs to Offer its Larger Clients Access to Ether, the Cryptocurrency

The American multinational investment bank and financial services company, Goldman Sachs announces access to Ether, the cryptocurrency that fuels the Ethereum network through a fund issued by Galaxy Digital Holdings Ltd.

Under this new plan, Goldman will charge an introduction fee for referring clients to the Galaxy Ethereum Fund. The company asserted that a minimum investment amount of $250,0000 over a 12-month period has generated over $50 million in sales for 30 clients. However, the filling doesn’t state if the flows are related to Goldman Sachs as the investment bank was not involved in the fund’s inception.

Goldman-Galaxy to shake hands on their crypto alliance

Galaxy Digital is a digital asset and blockchain investment company that is currently Goldman is liquidating bitcoin. In May 2021, Goldman re-erected its crypto trading desk. The Head of Digital Assets at Goldman, Mathew McDermott, first announced plans to offer trading options in Ether in June 2021.

However, this strategic tie-up between Goldman and Galaxy would allow investors to directly employ Ethereum as a physical asset than a by-product as in the case of the previous instance. Crypto pundits believe that this alliance will help investors gain a better reflection of the current price and free them of the concerns around virtual currency storage and hold up.

Galaxy aims to target institutional investors

With this alliance, Galaxy aims to strengthen its name in the crypto fund. By targeting institutional investors, Galaxy can boost the customer base around the digital asset ecosystem. The company was founded by the former hedge fund manager, Michael Novogratz who has executed a similar arrangement with Morgan Stanley, which amassed $250 million in cumulative sales.

However, Galaxy will keep on expanding its strategic partnerships. In the last 12 months, Galaxy has acquired Vision Hill Group and Bitgo Inc. The rise in Galaxy’s stature is due to its middleman behaviour that allows highly regulated banks to invest in cryptocurrencies. In support, both Goldman and Galaxy has released official statements around the partnership.

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