Goldman Sachs has surprised Wall Street with its $710 million investment in Bitcoin ETFs, including a 156% rise in BlackRock’s iShares Bitcoin Trust and a 116% increase in GBTC since August. This indicates growing interest from traditional financial institutions in cryptocurrencies.
Goldman Sachs Bitcoin ETF Holdings
According to Goldman Sachs' 13F filing with the U.S. Securities and Exchange Commission, the investment giant has significantly doubled its Bitcoin investment. Goldman Sachs now holds $461 million in BlackRock’s iShares Bitcoin Trust, an 83% increase from the last filing, making it the second-largest holder of this fund. Additionally, it owns $95.5 million in Fidelity’s Wise Origin Bitcoin ETF, up 13%, and $71.8 million in GBTC, which surged by 116%. The most notable increase was in BITB, where holdings jumped by 156%, reaching $22.5 million. These figures suggest Goldman Sachs is placing a large bet on Bitcoin's future, especially as the cryptocurrency became the 7th-largest asset globally.
Bitcoin’s Record-Breaking Rally
Goldman Sachs' increased Bitcoin investments align with a period of record-breaking gains for the cryptocurrency. Donald Trump's victory boosted market optimism, prompting many to believe Bitcoin will continue its upward trend, reaching an all-time high of $93,477 in November with a market cap nearing $2 trillion. Although Bitcoin has slightly dipped since then, major financial institutions remain interested.
Wall Street’s Bitcoin Prediction
Standard Chartered predicts that Bitcoin could surge to $125,000 if Trump returns to the White House, suggesting a potential 40% rise from current levels. Bitcoin advocate Michael Saylor also expects the cryptocurrency to reach $100,000 by the end of the year. These predictions reinforce expectations of further growth in the cryptocurrency.
Goldman Sachs' actions highlight the growing interest of traditional financial companies in Bitcoin and cryptocurrencies. Investing significant funds into Bitcoin ETFs could indicate trust in the long-term potential of this asset.
