Amidst an ever-fluctuating cryptocurrency market, major Wall Street banks including Goldman Sachs, Morgan Stanley, and Bank of America have maintained their positions in Bitcoin ETFs throughout the third quarter of 2024. Despite price fluctuations that saw Bitcoin move between $53,000 and $66,000, institutions appear to be taking a cautious stance, with no significant changes to their allocations. However, analysts point out that Bitcoin’s recent surge, surpassing $93,000 in late October, could trigger renewed institutional interest.
Goldman Sachs has been a standout in this move, increasing its exposure to the iShares Bitcoin Trust (IBIT), with a stake now valued at $710 million, almost double its previous position. This move underscores a broader trend in which traditional institutions are beginning to adapt to the rise of cryptocurrencies, managing their assets prudently, but not missing out on the opportunity to benefit from rising demand. Despite this, banks such as Morgan Stanley, Bank of America and HSBC have held relatively steady positions, waiting to see how macroeconomic events unfold, especially with the US presidential election approaching.
With the victory of a pro-crypto candidate like Donald Trump, expectations of a favorable regulatory push and rising prices could be the catalyst for increased institutional interest in the final quarter of 2024. CoinDesk analysis suggests that with the political climate becoming more friendly towards cryptocurrencies, institutions could increase their exposures, driven by the fear of being left behind (FOMO) in a market that continues to show signs of explosive growth. The upcoming 13F filing in early 2025 will be key to understanding how Wall Street banks adjust their strategies as Bitcoin approaches new heights.
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