According to Decrypt: Goldman Sachs, a global investment giant once sceptical of Bitcoin, disclosed significant Bitcoin exchange-traded fund (ETF) holdings in a recent SEC filing dated November 14, 2024. The firm’s total Bitcoin ETF portfolio reached $718 million, marking a 71% increase with an additional $300 million in Q3 2024.
The bulk of the investment lies in BlackRock’s iShares Bitcoin Trust ETF (IBIT), where Goldman Sachs holds $461 million. Additional holdings include Fidelity’s Wise Origin Bitcoin Fund (FBTC) at $96 million, Grayscale Bitcoin Trust ETF (GBTC) at $72 million, and Invesco Galaxy Bitcoin ETF (BTCO) at $60 million.
Timeline of Goldman Sachs’ Bitcoin ETF Investments
Goldman Sachs first entered the Bitcoin ETF market in Q2 2024, initiating its exposure with a $418 million investment. By Q3, the firm had significantly increased its holdings, signalling its growing confidence in the cryptocurrency market.
Diversified Portfolio Across Multiple Bitcoin ETFs
The firm’s Bitcoin ETF investments span a variety of funds, including:
$22.5 million in Bitwise Bitcoin ETF (BITB)
$3 million in ARK 21Shares Bitcoin ETF (ARKB)
$4 million in Grayscale Bitcoin Mini Trust ETF (BTC)
$800,000 in WisdomTree Bitcoin Fund (BTCW)
Additionally, Goldman Sachs revealed $22 million in Ether (ETH) ETFs, including $22.6 million in Grayscale Ethereum Mini Trust ETF (ETH) and $2.6 million in Fidelity Ethereum Fund (FETH).
Past Criticism of Bitcoin from Goldman Sachs Execs
Goldman Sachs’ recent investments mark a stark contrast to its previous stance on cryptocurrencies. In 2020, the firm criticized Bitcoin, labeling it "not an asset class" and "not a suitable investment." Even after launching a limited BTC derivatives trading desk in 2021, skepticism persisted among executives.
Sharmin Mossavar-Rahmani, Chief Investment Officer for Private Wealth Management, compared Bitcoin to the infamous tulip mania of the 1600s in an April 2024 Wall Street Journal interview, stating, “We’re not believers in crypto.”
What Goldman Sachs’ Investment Signals for the Crypto Market
Goldman Sachs’ substantial Bitcoin ETF holdings underscore the increasing institutional adoption of cryptocurrency assets. The firm’s shift from skepticism to significant investment reflects the growing credibility of Bitcoin in the financial world.
With Bitcoin trading at approximately $89,709 as of November 15, 2024, Goldman Sachs’ involvement signals a bullish sentiment that could influence other institutions to follow suit.
