Goldman Sachs has ignited fresh excitement in cryptocurrency circles. Recent regulatory filings reveal the banking titan amplified its Bitcoin ETF investments dramatically. While specifics remain under wraps, insiders suggest this marks a pivotal shift for traditionally cautious institutions.
Goldman Sachs Crypto Playbook
Once sceptical of digital assets, Goldman Sachs now emerges as a crypto contender. Historically, the bank avoided direct Bitcoin exposure, favouring blockchain research instead. However, 2023 marked a turning point: July saw plans for tokenised funds, while November introduced blockchain ventures streamlining trade settlements. These steps foreshadowed deeper crypto commitments.
$1.56 Billion Bitcoin Bet
According to SEC filings analysed by BlockBeats, Goldman Sachs held $1.27 billion in BlackRock’s iShares Bitcoin Trust (IBIT) by December 31, 2024. This is an 88% quarterly surge. This is followed by its increased stake in Fidelity Wise Origin Bitcoin Fund (FBTC) which skyrocketed 105% to $288 million. Notably, the bank dumped all shares of ARK 21Shares Bitcoin ETF (ARKB) and slashed Grayscale Bitcoin Trust (GBTC) holdings.
What else are they betting on?
Beyond Bitcoin, Goldman Sachs embraced Ethereum. The firm acquired $235.5 million in iShares Ethereum Trust (ETHA) and upped its Fidelity Ethereum Fund (FETH) stake to $234.69 million. Now they have a total Ethereum ETF holding of $476.5 million, an 1,800% quarterly jump.
Goldman’s Hybrid Crypto Strategy
Goldman Sachs didn’t just buy ETFs, they integrated options into their crypto strategy. The 13F filing disclosed call and put options on Bitcoin ETFs, blending direct ownership with derivatives. This hybrid approach hedges risk while capitalising on volatility. Experts argue such sophistication reflects maturing institutional tactics in once-niche markets.
Analyst Views
Goldman’s moves already reverberate across crypto markets. Bitcoin prices edged upward post-announcement, with analysts predicting sustained institutional inflows. “This isn’t a fluke,” said Fidelity strategist Linda Park. “When giants like Goldman dive in, smaller players follow.”
Looking ahead, Goldman plans to expand its three tokenised funds, merging blockchain transaction speed with traditional finance. As SEC approval for spot Ethereum ETFs looms, rivals like JPMorgan may accelerate their crypto roadmaps. For now, one message rings clear: The tide is turning for crypto on Wall Street.
Written By Fazal Ul Vahab C H
