Goldman Sachs Now Offers High Net Worth Investors Access to Bitcoin and Ethereum

Goldman Sachs Now Offers High Net Worth Investors Access to Bitcoin and Ethereum

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A filing with the United States Securities and Exchange Commission this week shows that Goldman will expand its crypto offering to include Ethereum for large investors.

Key points

  • SEC filings show that Goldman Sachs will provide access to Ethereum to its largest investors with a minimum deposit of $250,000.
  • Last June, Goldman offered a Bitcoin futures vehicle to top clients.
  • Nothing in the documents suggests that such offers are in the works for ordinary investors seeking access to crypto.

According to public filings this week with the SEC, Goldman Sachs plans to offer its largest banking customers access to Ethereum’s Ethereum (ETH) digital coin through a third-party issuance of Galaxy Digital.

This is not the first foray into cryptocurrency investment offerings for Goldman. Last June, the investment banking firm also partnered with Galaxy Digital to launch and manage Goldman’s Bitcoin futures offering.

Details of Goldman’s Ethereum investment option

According to the amended Form D filing, the “Galaxy Institutional Ethereum Fund” was launched in February 2021 with a minimum initial investment of $250,000, essentially limiting access to institutional players. The SEC filings further pointed out that 28 clients were registered with the fund at the time of the filing, with invested assets totaling more than $50 million.

While Goldman was not tied to Galaxy’s ETH fund when it launched, the filing said Goldman would receive an undisclosed sum as a finder’s fee for accounts it sends to Galaxy that sign up for the ETH fund. future, “Goldman Sachs & Co. LLC will receive an introductory fee with respect to certain clients referred to the issuer; CAIS Capital LLC will receive certain placement fees with respect to clients referred to the issuer, each as disclosed to their affected customers,” the filing reads.

While Galaxy Digital seems to have cracked the SEC code to offer cryptocurrencies to large customers, other efforts have not been so successful.

The SEC Has Been Picky About Allowing Consumer Access to Crypto

Last November, the SEC rejected a proposal by VanEck for a bitcoin exchange-traded fund (ETF) that would have held the actual crypto rather than just bitcoin futures. Submitted in March, the request was to buy Bitcoin directly from the “spot” market and hold it in an ETF that investors could then buy into.

Although the SEC authorized two ETFs based on Bitcoin futures to begin trading in October 2021, it would not authorize an ETF containing actual Bitcoin, citing in its 51-page report its frequent concerns about possible manipulation. and fraud, etc. in the crypto market. As a context, a futures-based ETF invests in indirect contracts to buy or sell an asset at a specified date in the future.

It will be interesting to see if this week’s executive order from President Joe Biden that has tasked most federal agencies – including the SEC – with studying and ultimately implementing crypto regulations will relax or limit access to these types of investment options in the future for individual investors.

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