Goldman Sachs, the renowned Wall Street investment bank, has significantly increased its crypto exposure, revealing total crypto holdings of approximately $2.36 billion, including $1.1 billion invested in a Bitcoin ETF. This disclosure emerged from recent financial holdings reports and signals a notable shift in Goldman Sachs’ stance toward Bitcoin, indicating a more active involvement in the cryptocurrency sector. The bulk of this investment is in the “IBIT” iShares Bitcoin Trust ETF managed by BlackRock. Additionally, the bank has invested nearly $35.8 million in Fidelity’s Wise Origin Bitcoin Fund, along with stakes in American Bitcoin, Bitcoin Depot, and other Bitcoin mining and cloud-based companies. Filings also show Goldman Sachs has positions in IBIT call and put options.
Goldman Sachs’ interest in Bitcoin began cautiously over the past five years, initially treating it as a speculative asset. In 2022, the bank made milestones by issuing Bitcoin-backed loans and conducting its first non-deliverable Bitcoin options trades. However, in 2024, Goldman Sachs substantially increased its investment in Bitcoin ETFs, reflecting a serious commitment to the digital asset space. The bank has also invested in other major cryptocurrencies such as Ethereum, XRP, and Solana.
This development comes amid Bitcoin’s struggle to maintain its position above the psychological $70,000 mark, with recent sharp price declines followed by some recovery. Despite ongoing volatility and a generally bearish market trend, experts believe Goldman Sachs’ substantial investment in Bitcoin ETFs could enhance the cryptocurrency market’s stability and regulatory legitimacy. Nonetheless, price fluctuations and market uncertainties continue to pose challenges for investors.
Source: bitcoinmagazine
