More than $ 32 million has been invested in Galaxy Digital ETH funds for institutional investors since their launch in February, according to filings with the SEC.
Galaxy Institutional Ethereum Fund, LP, registered in Delaware, announced investments of $ 22,031,077 from three investors. According to documents filed by another version of the fund, which is registered in the Cayman Islands, two investors contributed $ 10,100,000 to the fund.
The purpose of such funds is to allow institutional investors to invest in ETH without buying it directly. While investors face the risk of falling prices, Galaxy Digital takes on the complexities of storing private keys. Galaxy charges a 1% commission for the maintenance of the fund. The funds were launched when ETH was worth around $ 1,500, well below the highs set in February when the price of Ether first surpassed $ 2,000.
“Bitcoin has established itself as a store of value, which we remain confident in, while the programming capabilities of Ethereum’s blockchain represent a great prospect for growth,” Galaxy head of asset management Steve Kurz said in January. “We are delighted to help our clients take advantage of this growth potential as a complement to BTC.”
Following the release of the latest fund data, Kurz said ETH funds are “the natural next step for our business.”
“With these funds, we aim to offer investors easy, secure and institutional access to this crypto asset,” said Kurz.
NZ Funds and Vision Hill Group are two of the five investors who have invested in the funds, according to a statement from the Galaxy press service. The company announced in January that it plans to launch three ETH-based funds in February. The company positions ETH as an asset with high growth potential.
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