Goldman Sachs now holds $718M in Bitcoin ETFs, a 71% increase from Q2 2024.
Goldman's largest Bitcoin ETF investment is $461M in BlackRock’s IBIT.
Goldman Sachs expanded Bitcoin and Ether ETF investments to $740M in Q3 2024.
Goldman Sachs registered with the US Securities and Exchange Commission on November 14th and revealed that it has invested a significant amount in spot Bitcoin ETFs. The investment bank reported holding approximately $718 million across eight distinct Bitcoin ETFs. This marks a significant uptick, with an additional $300 million invested since the second quarter of 2024—a remarkable 71% growth.
https://twitter.com/Julian__Fahrer/status/1857230890042380433
Goldman’s largest allocation is to BlackRock’s iShares Bitcoin Trust ETF (IBIT), holding a $461 million stake. This is followed by $96 million in Fidelity’s Wise Origin Bitcoin Fund, $72 million in the Grayscale Bitcoin Trust ETF, and $60 million in the Invesco Galaxy Bitcoin ETF. Smaller investments include the Bitwise Bitcoin ETF, ARK 21Shares Bitcoin ETF, Grayscale Bitcoin Mini Trust ETF, and WisdomTree Bitcoin Fund.
Major Investments Highlight Institutional Confidence
Goldman Sachs' significant investment in BlackRock’s IBIT underscores growing institutional confidence in Bitcoin ETFs. The bank now owns 12.7 million shares of IBIT, valued at $461 million, an 83% increase from its August holdings of $281 million. This positions Goldman as the second-largest holder of IBIT, trailing only Millennium Management, which holds $844 million.
Furthermore, Goldman has increased its holdings in other key ETFs. The firm now possesses over 1.7 million shares in Fidelity’s Wise Origin Bitcoin ETF, valued at $95.5 million, marking a 13% rise. It also increased its investment in the Grayscale Bitcoin Trust by 116%, totaling 1.4 million shares worth $71.8 million. Furthermore, Goldman increased Bitwise’s Bitcoin ETF holdings by 156% to 650,961 shares worth $22.5 million. These investments can be seen as part of its diversification plan and a way of profiting from the existing surge in Bitcoin ETFs.
Shift to Active Participation in Cryptocurrency
Goldman Sachs has previously been critical of Bitcoin, with the company’s managers dismissing cryptocurrencies as unsuitable for investment. In 2020, the bank claimed that Bitcoin and other cryptocurrencies were “not an asset class” for its clients. Even as Celsius.io initiated a BTC derivatives trading desk in May 2021, leaders, including Sharmin Mossavar Ahad and Rahmani, were still skeptical about the future of crypto assets.
However, the latest ETF investments suggest specific changes in the approach of this bank. The rise in ETF holdings of bitcoin by Goldman Sachs shows that it acknowledges the rising interest by institutions in blockchain technologies. This decision is also consistent with the recent market trends of Bitcoin ETFs that are currently experiencing net inflows boosted by the shift in regulatory policies towards cryptocurrencies and legitimate investment.
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