Goldman Sachs has significantly increased its exposure to Bitcoin exchange-traded funds during the fourth quarter of 2024, reflecting a rise in institutional interest in digital assets. According to the latest 13F filings submitted to the U.S. Securities and Exchange Commission (SEC), the company raised its holdings in Bitcoin ETFs by 121.1%, reaching $1.57 billion, compared to $710 million in the previous quarter.
Increase in Bitcoin Fund Holdings The largest portion of Goldman Sachs's investments is allocated to the iShares Bitcoin Trust (IBIT) managed by BlackRock, which is the largest Bitcoin ETF by assets under management. The number of shares owned by the company in the fund increased by 177% to 24.07 million shares, valued at $1.28 billion.
The company also boosted its investments in other Bitcoin ETFs, adding $288 million in shares of the Wise Origin Bitcoin ETF (FBTC) managed by Fidelity, an increase of 105% from the previous quarter, as well as holding $3.6 million in the Grayscale Bitcoin Trust (GBTC).
Massive Jump in Ethereum Investments Alongside Bitcoin, Goldman Sachs saw a remarkable increase in its investments in Ethereum, with its exposure to ETH ETFs rising to $476 million, compared to $22 million in the third quarter, representing approximately 19-fold growth. These investments were distributed between FETH from Fidelity valued at $235 million and ETHA from BlackRock valued at $236 million, reflecting a growing institutional trend towards Ethereum.
The Role of Rising Prices in Boosting Investments This investment expansion comes amid a 41% rise in Bitcoin prices and a 26% rise in Ethereum during the fourth quarter, according to data from CoinGecko, contributing to the inflation of institutional holdings.
Strategic Shift in Goldman Sachs's Position This shift in Goldman Sachs's strategy marks a notable evolution, especially after its cautious stance on cryptocurrencies since 2020, when it described Bitcoin as not being a suitable "asset class" for investment. However, positive regulatory changes and a Wall Street environment increasingly supportive of digital assets, especially under the new U.S. policies, have enhanced the appeal for institutional investment in this sector.
Goldman Sachs's expansion into Bitcoin and Ethereum ETFs indicates that digital assets are gaining increasing acceptance among major financial institutions. As the regulatory environment continues to evolve, we may witness further institutional expansion in the cryptocurrency market in the coming months.
