Originally published on: November 15, 2024
In a surprising turn of events, Goldman Sachs, a financial giant that once criticized Bitcoin, has revealed its substantial investment in Bitcoin exchange-traded funds (ETFs).
In a recent filing with the US Securities and Exchange Commission on November 14, Goldman Sachs disclosed holdings of about $718 million in eight different Bitcoin (BTC) ETFs.
Among these investments, the bank reported a massive $461 million stake in BlackRock’s iShares Bitcoin Trust ETF (IBIT), marking a significant increase in their portfolio compared to the previous quarter.
The report showcases Goldman Sachs’ growing interest in the crypto space, with a 71% increase in Bitcoin ETF investments since the second quarter. This move follows their initial entry into the Bitcoin ETF market in Q2, when they made their first BTC ETF purchase valued at $418 million.
In addition to the substantial investment in BlackRock’s IBIT, Goldman Sachs also holds positions in other notable Bitcoin ETFs, with $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.
Moreover, the bank has diversified its holdings by investing in other Bitcoin ETFs such as Bitwise, ARK 21Shares, Grayscale Bitcoin Mini Trust, and WisdomTree Bitcoin Fund.
Not stopping at Bitcoin, Goldman Sachs has also ventured into the world of Ether (ETH) ETFs, with investments totaling $22 million in Grayscale Ethereum Mini Trust and Fidelity Ethereum Fund.
This bold move by Goldman Sachs marks a significant shift in their stance towards cryptocurrencies, especially considering their past criticism of Bitcoin. In 2020, they dismissed Bitcoin as not being a legitimate asset class or a suitable investment for their clients.
Despite launching a limited BTC derivatives trading desk in May 2021, some executives at Goldman Sachs, including Private Wealth Management chief investment officer Sharmin Mossavar-Rahmani, remained skeptical of crypto. However, the recent surge in interest and investment in Bitcoin and Ethereum ETFs indicates a changing tide within the financial powerhouse.
With the cryptocurrency market continuing to evolve and gain mainstream acceptance, Goldman Sachs’ strategic investments in Bitcoin and Ethereum ETFs signal their recognition of the growing importance of digital assets in the global financial landscape.
