Goldman Sachs Group has introduced a major feature to their enterprise, a feature guaranteed to make a big hit with customers who are also crypto enthusiasts. The multinational bank has gone into a beneficial partnership with Galaxy Digital Holdings, a prominent cryptocurrency merchant bank, to boost customer services by enabling customers to get easier and more seamless access to crypto businesses.
With this partnership, Goldman Sachs can give its clients exposure to Ether via Galaxy Digital Holdings Ethereum Fund, according to a Securities and Exchange Commission (SEC) filing.
For the duration of this agreement, Goldman Sachs will receive a juicy referral fee for every client they introduce to Galaxy’s Ethereum Fund. In the space of 12 months, the fund has yielded more than 50 million USD in sales to over 25 clients, with a minimum investment fee of 250,000 USD. Although, the specific amount of clients brought in by Goldman is not known.
Goldman clients who desire to invest in Ethereum can now do so on the spot, without a lot of fuss, because the bank now has direct access through Galaxy Holding’s ETH Fund.
Under this agreement, Goldman Sachs has started recommending the ETH Fund as a great investment product guaranteed to yield potential. It is a beneficial partnership for both parties involved.
Giving Clients Smoother Access to Crypto Products
Goldman Sachs is known for its keen interest in the world of digital currencies. The game-changer moment was when the bank created a crypto trading desk to create markets in cryptocurrencies. This marked a great leap toward digital assets investing, and it was the first partnership between Goldman Sachs and Galaxy Digital.
With Galaxy Digital, the bank started trading Bitcoin features to give their clients more access and flexibility in deals. Galaxy served as an excellent liquidity provider for Goldman to help their clients protect access to the assets that they would like to trade and to give clients the best possible execution pricing.
Goldman has been dependent on Galaxy since then because it is not equipped to handle Bitcoin and other cryptocurrencies directly. Galaxy acts as the bridge to the volatile crypto world because they have the expertise and wide range of liquidity venues.
Goldman and Galaxy; A Powerful Cryptocurrency Alliance
Because Goldman and Galaxy have worked so well in the past, it comes as no surprise that this new milestone in the partnership will positively impact the world of crypto.
With this partnership, investors can attain direct contact with Ethereum rather than a product that is derivative-based. Most crypto enthusiasts believe that this direct investment provides a closer approximation of the spot price.
But, regulators have a different opinion. They have shown great concern over people storing virtual currencies and custody.
Galaxy is a firm known to target institutional users, making this arrangement very convenient and strategic. As the highly regulated institution cannot provide and invest in cryptocurrency directly, Galaxy serves as the capable bridge. It is safe to note that both parties have not released an official statement on the partnership.