Goldman Sachs, one of the world's leading investment banks, has announced significant investments in Bitcoin ETFs despite its previous criticism of Bitcoin and cryptocurrencies.
Goldman Sachs' New Investments in Bitcoin ETFs
In a filing with the US Securities and Exchange Commission on November 14, Goldman Sachs disclosed approximately $718 million in holdings across eight Bitcoin ETFs. Among these, $461 million was invested in BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust ETF. The latest report showed a $300 million increase in its Bitcoin ETF investments from the second quarter, a 71% rise.
Background in Cryptocurrency Involvement
Goldman Sachs entered the spot Bitcoin ETF market in Q2 2024, making its first purchase worth $418 million. Apart from investments in the iShares Bitcoin Trust ETF, the bank invested $96 million in Fidelity’s Wise Origin Bitcoin Fund, $72 million in the Grayscale Bitcoin Trust ETF, and around $60 million in the Invesco Galaxy Bitcoin ETF.
Changing Stance on Bitcoin
Despite significant investments in Bitcoin, the bank and its executives have previously expressed skepticism about cryptocurrencies. In 2020, Goldman Sachs claimed cryptocurrencies are not an asset class and not suitable for investing by its clients. However, they launched limited BTC derivatives trading in 2021.
Goldman Sachs, despite previous criticism, has significantly increased its investments in Bitcoin ETFs, indicating a shift in the bank's approach to digital assets. This may signal increasing confidence in cryptocurrencies and their potential acceptance by financial institutions.
