Goldman Sachs, a financial giant once vocal in its criticism of cryptocurrencies, has emerged as a major player in Bitcoin exchange-traded funds (ETFs). The bank disclosed significant holdings totaling approximately $718 million in eight Bitcoin ETFs, according to a Nov. 14 filing with the United States Securities and Exchange Commission (SEC).
Major Investments in BlackRock and Fidelity
The filing reveals that Goldman Sachs has allocated $461 million to BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), making it the bank’s largest Bitcoin ETF holding. Other notable investments include $96 million in Fidelity’s Wise Origin Bitcoin Fund, $72 million in the Grayscale Bitcoin Trust ETF, and $60 million in the Invesco Galaxy Bitcoin ETF.
The portfolio also includes smaller allocations: $22.5 million in the Bitwise Bitcoin ETF, $3 million in the ARK 21Shares Bitcoin ETF, $4 million in the Grayscale Bitcoin Mini Trust ETF, and approximately $800,000 in the WisdomTree Bitcoin Fund.
Goldman Sachs Sees Rapid Growth in ETF Exposure
Goldman Sachs has significantly expanded its Bitcoin ETF holdings since entering the market in the second quarter of 2024. The bank disclosed its first purchase of BTC ETFs in August, totaling $418 million. Since then, it has increased its Bitcoin ETF portfolio by 71%, adding $300 million in the third quarter.
While Bitcoin ETFs dominate Goldman Sachs’ crypto investments, the bank has also revealed holdings in Ether ETFs. Its portfolio includes $22.6 million in the Grayscale Ethereum Mini Trust ETF and $2.6 million in the Fidelity Ethereum Fund.
A Shift in Stance on Crypto
Goldman Sachs’ significant crypto investments mark a dramatic departure from its earlier scepticism of Bitcoin and other cryptocurrencies. In 2020, the bank dismissed cryptocurrencies as “not an asset class” and “not a suitable investment” for its clients.
Even as recently as April 2024, Sharmin Mossavar-Rahmani, Chief Investment Officer of Goldman Sachs Private Wealth Management, expressed doubts about crypto. In an interview with The Wall Street Journal, Mossavar-Rahmani compared the cryptocurrency market to the 17th-century tulip mania, stating, “We’re not believers in crypto.”
Despite past criticisms, Goldman Sachs’ aggressive move into the Bitcoin and Ether ETF markets signals a shift in how traditional financial institutions are engaging with digital assets. Whether this marks a long-term strategic pivot or a response to rising client demand remains to be seen, but it underscores the growing integration of cryptocurrencies into the global financial system.
