Goldman Sachs has significantly increased its exposure to cryptocurrency exchange-traded funds (ETFs), boosting its spot Ether ETF holdings by over 2,000% in Q4 2024 and more than doubling its Bitcoin ETF investments to $1.5 billion.
Massive Ethereum ETF Expansion
According to the company’s Feb. 11 Form 13F filing with the U.S. Securities and Exchange Commission (SEC), Goldman Sachs increased its Ethereum ETF position from $22 million to a staggering $476 million. The holdings are split between BlackRock’s iShares Ethereum Trust (ETHA) and Fidelity Ethereum Fund (FETH), with an additional $6.3 million invested in the Grayscale Ethereum Trust ETF (ETHE). This marks a dramatic shift in Goldman’s stance on Ethereum, reflecting rising institutional interest.
Bitcoin ETF Holdings Surge Past $1.5 Billion
Goldman Sachs also expanded its Bitcoin ETF holdings by 114%, bringing the total to $1.52 billion. The investment bank purchased nearly $1.28 billion in shares of BlackRock’s iShares Bitcoin Trust (IBIT), a 177% increase from the previous quarter. Additionally, it acquired $288 million worth of shares in the Fidelity Wise Origin Bitcoin Fund (FBTC) and holds $3.6 million in the Grayscale Bitcoin Trust (GBTC).
Interestingly, Goldman has exited positions in Bitcoin ETFs offered by Bitwise, WisdomTree, Invesco-Galaxy, and ARK-21Shares. The move suggests a preference for ETFs from major financial players like BlackRock and Fidelity, reinforcing their dominance in the crypto ETF sector.
Also Read: SEC May Acknowledge Grayscale’s XRP ETF Filing This Week: FOX Journalist
Market Factors and Institutional Adoption
Goldman’s increased crypto exposure coincided with rising market prices for Bitcoin and Ethereum. During Q4 2024, Bitcoin surged 41%, while Ethereum gained 26.3%, according to CoinGecko data. The surge in ETF investments further signals growing institutional adoption of digital assets, particularly as regulatory clarity improves.
Goldman Sachs initially entered the spot crypto ETF market in Q2 2024 with a $418 million Bitcoin ETF investment. The firm is now reportedly exploring the launch of its own crypto trading platform, leveraging blockchain technology for financial instruments, as reported by Bloomberg.
Goldman’s Changing Stance on Crypto
Despite its increasing crypto investments, Goldman Sachs has historically expressed skepticism about digital assets. Since 2020, the firm has stated that crypto is “not a suitable investment” and does not qualify as an asset class. As recently as April 2024, Goldman’s Private Wealth Management CIO, Sharmin Mossavar-Rahmani, likened the crypto market to 17th-century tulip mania.
However, the bank’s latest moves indicate a strategic pivot, aligning with the broader institutional shift toward crypto. With Goldman’s growing exposure to Bitcoin and Ethereum ETFs, Wall Street’s embrace of digital assets appears stronger than ever.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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