Goldman Sachs Expands Bitcoin ETF Holdings to Surpass $1.5 Billion
Goldman Sachs has significantly increased its investment in Bitcoin exchange-traded funds (ETFs), amassing a total of over $1.5 billion by the close of 2024. This strategic move underscores the financial giant’s growing commitment to the cryptocurrency market. According to the latest 13F filing with the US Securities and Exchange Commission (SEC), there has been a notable expansion in both Bitcoin and Ethereum-related positions, reflecting a rising institutional confidence in digital currencies.
Goldman Sachs’ Investment in Bitcoin ETFs Skyrockets
The spotlight on Goldman Sachs’ substantial Bitcoin ETF holdings was first highlighted by renowned crypto analyst MacroScope (@MacroScope17). The analyst noted that Goldman reported owning $1.27 billion in IBIT, which equates to 24,077,861 shares, representing an impressive 88% increase in its stake in BlackRock’s iShares Bitcoin Trust (IBIT) compared to the previous quarter. Additionally, the bank increased its investment in Fidelity’s Wise Origin Bitcoin Fund (FBTC) by 105%, bringing this position to approximately $288 million, with a total of 3,530,486 shares.
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Besides these major ETF holdings, Goldman Sachs also reported a $3.6 million investment in the Grayscale Bitcoin Trust (GBTC). The firm has either closed or reduced smaller positions in other spot Bitcoin ETFs, including those offered by ARK 21Shares (ARKB), Bitwise (BITB), Grayscale Mini Trust, Invesco Galaxy (BTCO), and WisdomTree (BTCW).
Diversified Strategies: Options Positions and Hedging
In addition to direct ETF shares, Goldman Sachs has taken significant options positions. MacroScope noted that the filing disclosed an IBIT call option valued at $157 million, alongside puts on IBIT and FBTC worth $527 million and $84 million, respectively. These strategies suggest that Goldman is hedging against potential downside risks while maintaining the ability to capitalize on any further Bitcoin price surges.
Ethereum ETFs Gain Momentum
Bitcoin was not the only digital asset benefiting from Goldman’s expanding interest in cryptocurrencies. The bank also significantly increased its exposure to Ethereum-focused ETFs, growing from $22 million to approximately $476 million in the fourth quarter—a nearly 19-fold increase. This shift was primarily seen in Fidelity’s Ethereum Fund (FETH), which accounted for $234.7 million, and BlackRock’s iShares Ethereum Trust (ETHA), which totaled $235.5 million. A smaller stake was also noted in Grayscale’s ETHE.
Despite Ethereum’s price rising by around 26% during the quarter, its performance lagged behind Bitcoin. This discrepancy is partly due to technical challenges within the Ethereum network and a comparatively higher institutional demand for Bitcoin.
Goldman Sachs and the Institutional Adoption of Digital Assets
Goldman Sachs’ bullish stance aligns with a broader trend of increasing interest among major financial institutions in digital assets. Having initially delved into spot Bitcoin ETFs in mid-2024, the bank now seems ready to deepen its involvement, supported by ongoing price gains and a more favorable regulatory environment as perceived by many industry observers.
As Bitcoin reached new heights of $109,000 shortly before the US Presidential inauguration, Goldman’s expanded cryptocurrency positions underscore a growing trend: traditional Wall Street players are increasingly aiming to gain from the potential upside of digital currencies while managing risks through ETFs and options strategies.
At the time of reporting, Bitcoin was trading at $96,239.
