Goldman Sachs is seriously betting on Bitcoin, increasing its holdings in Bitcoin exchange-traded funds (ETFs) to over $1.5 billion in the last quarter of 2024. This shows they’re really getting into crypto.
A Massive Investment in Bitcoin ETFs
A recent SEC filing revealed Goldman Sachs significantly boosted its investments in several Bitcoin ETFs. They increased their stake in BlackRock’s iShares Bitcoin Trust (IBIT) by a whopping 88%, bringing their total investment to $1.27 billion. They also upped their holdings in Fidelity’s Wise Origin Bitcoin Fund (FBTC) by 105%, reaching approximately $288 million. While they also invested smaller amounts in other Bitcoin ETFs, they reduced their positions in some.
Hedging Their Bets
Goldman Sachs isn’t just buying ETFs; they’re also using options to manage risk. They have options contracts worth a significant amount, indicating they’re trying to protect themselves from potential price drops while still benefiting from potential price increases.
Ethereum Also Sees a Boost
It wasn’t just Bitcoin that saw a Goldman Sachs investment boost. Their Ethereum ETF holdings jumped from $22 million to roughly $476 million – a nearly 20-fold increase! This was mainly invested in Fidelity’s and BlackRock’s Ethereum funds.
Why the Big Move?
This massive investment reflects a broader trend of major financial institutions showing more interest in crypto. Goldman Sachs’s increased involvement is likely driven by Bitcoin’s price increases and a more positive outlook on crypto regulations. With Bitcoin recently hitting $109,000, it’s clear that Wall Street is trying to get in on the action, managing risk through ETFs and options. At the time of writing, Bitcoin is trading around $96,239.
