Goldman Sachs Expands ETF Holdings, Boosts Ether Investments by 2,000%

• Goldman Sachs increased its Ether ETF holdings from $22M to $476M, marking a 2,000% surge.
• The firm raised its Bitcoin ETF investments by 114% to $1.52B, favoring BlackRock and Fidelity funds.
• Goldman exited Bitwise, WisdomTree, and ARK-21Shares ETFs, signaling a preference for established issuers like BlackRock.

The fourth quarter of 2024 witnessed Goldman Sachs undertake a major growth in its investments into cryptocurrency exchange-traded funds (ETFs). Recent SEC Form 13F filings from February 11 show that the financial institution boosted both Bitcoin ETF investments above $1.5 billion along with doubling its Ether ETF holdings to a 2,000% increase.

Goldman’s Ether ETF Holdings Surge

The filing reveals that Goldman Sachs’ Ether ETF investments grew from $22 million to $476 million in Q4. The firm allocated its holdings across multiple funds, primarily BlackRock’s iShares Ethereum Trust (ETHA) and the Fidelity Ethereum Fund (FETH). Additionally, Goldman invested $6.3 million in the Grayscale Ethereum Trust ETF (ETHE).

Goldman Sachs increased its Bitcoin ETF holdings by 114% during the same period, bringing its total investment to $1.52 billion. This includes $1.28 billion in BlackRock’s iShares Bitcoin Trust (IBIT), marking a 177% rise from Q3. The firm also holds $288 million in Fidelity’s Wise Origin Bitcoin Fund (FBTC) and $3.6 million in the Grayscale Bitcoin Trust (GBTC).

Market Performance and Strategic Adjustments

The firm’s crypto ETF acquisitions coincided with price increases in Bitcoin and Ether. Bitcoin surged 41%, while Ether gained 26.3% in Q4 2024, based on CoinGecko data. At the same time, Goldman divested its holdings in ETFs from Bitwise, WisdomTree, Invesco-Galaxy, and ARK-21Shares. The move signals a shift toward more established funds such as BlackRock and Fidelity.

Goldman Sachs initiated its entrance into the spot crypto ETF market in the second quarter of 2024 by putting $418 million into Bitcoin ETFs. Goldman Sachs has been doubtful towards cryptocurrency assets throughout its past statements. 

Bloomberg published a report in November 2024 which indicated that Goldman plans to establish a crypto trading platform that will serve institutional clients. At Davos in January 2025 CEO David Solomon reiterated his position on Bitcoin referring to it as speculative while continuing to support the US dollar as the global reserve currency.