Goldman Sachs to Offer Ethereum Fund to Investors Through Galaxy DigitalMarch 22, 2022
When two giants from the financial world collaborate, something big is bound to happen. The same is the case with Goldman Sachs and Galaxy Digital partnerships. The venture between the two financial movers and shakers is aiming to start a new Ethereum fund program for the investors. The news was confirmed by the official documents for the venture submitted for reporting to the Securities and Exchange Commission of the United States.
The said documents also clarified that Goldman Sachs is legally responsible for all the revenue that it will generate from granting access to the Ethereum fund to its corporate clients. In simple words, it means that Goldman Sachs will receive a commission for referring their clients to the Ethereum fund introduced by Galaxy Digital.
Only Accredited Clients will have Access to Ethereum Fund
Not all clients of Goldman Sachs can qualify for the Galaxy Digital Ethereum Fund. Only accredited investors who have enough leverage to sustain the risk factors will be referred to the fund. Meanwhile, SEC filings also reveal that the Ethereum fund in question has managed to generate $50 million in gross revenue in 12 months.
The Ethereum fund under question had 28 participants who made a modest investment of $250,000. However, there are still some unresolved discrepancies around cash flow records for the fund. Goldman Sachs maintained that the investment bank was not present in the space when the fund was undergoing its first-year development.
Galaxy Digital first announced its intention to set up an Ethereum fund a year ago. The firm had plans to not only work with giants like Goldman Sachs, but it was planning to launch a suite of multiple Ethereum funds. Another similar venture is started in association with CIAS Capital LLC. The firm also plans to receive a specified sum for making Galaxy Digital referrals to their clients.
At this point, the centralized banking corporations are unable to inject any type of fiat currencies into the Ethereum mainframe. However, the aforementioned ventures can create a bypass for the banks to make that leap. Goldman Sachs executive director Roger Bartlett recently quit his position in February and joined Coinbase.