Goldman Sachs, one of the leading global investment banks, has significantly expanded its Bitcoin ETF holdings, announcing a $718 million investment in a filing with the SEC on November 14.
Increase in Bitcoin ETF Investments
Goldman Sachs has increased its Bitcoin ETF portfolio by $300 million since the second quarter, marking a 71% increase, the bank’s quarterly asset report revealed. Goldman’s largest Bitcoin ETF investment is its $461 million stake in BlackRock’s iShares Bitcoin Trust ETF (IBIT). Other holdings include: $96 million in Fidelity's Wise Origin Bitcoin Fund (FBTC), $72 million in Grayscale Bitcoin Trust ETF (GBTC), and $60 million in Invesco Galaxy Bitcoin ETF (BTCO). The additional investments in Bitwise, ARK 21Shares, Grayscale Mini Trust, and WisdomTree Bitcoin ETFs total approximately $30 million. The bank also announced that it has invested $22.6 million in Ethereum-focused ETFs, including Grayscale's Ethereum Mini Trust ETF and Fidelity's Ethereum Fund.
Strategy Change
Goldman Sachs first entered the Bitcoin ETF market with a $418 million investment in Q2 2024. The move comes despite the bank’s previous skepticism towards cryptocurrencies. Goldman Sachs dismissed Bitcoin and cryptocurrencies in 2020 as 'not an asset class' and unsuitable for investment. As late as April 2024, Sharmin Mossavar-Rahmani, CIO of Goldman Sachs Private Wealth Management, reiterated her skepticism, comparing crypto enthusiasm to the 'tulip mania' of the 1600s.
Changing Sentiments
The bank’s latest moves mark a notable shift in line with broader institutional adoption of Bitcoin. Its investments in leading Bitcoin ETFs like BlackRock’s IBIT and Fidelity’s FBTC underscore growing confidence in the asset’s potential as regulatory clarity increases.
Goldman Sachs' strategic expansion into Bitcoin and Ethereum ETFs indicates a shift in the bank's perception of cryptocurrencies, mirroring broader institutional investor interest in the sector.
