Goldman Sachs Expands Bitcoin ETF Holdings to $2.3 Billion

• Goldman Sachs’ Bitcoin ETF holdings surged to $2.3 billion, marking a $710 million increase from the previous quarter.
• The bank’s investments are primarily in iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC), with minimal exposure to GBTC.
• Other major banks, including Morgan Stanley and Bank of America, have also increased their Bitcoin ETF holdings amid rising institutional demand.

Goldman Sachs has significantly increased its exposure to Bitcoin ETFs, according to its latest 13F filing with the Securities and Exchange Commission (SEC). The investment banking giant now holds $2.3 billion in Bitcoin ETF shares, reflecting a $710 million rise compared to the previous quarter.

A large portion of Goldman Sachs’ Bitcoin exposure is in BlackRock’s iShares Bitcoin Trust (IBIT). The bank holds approximately $1.9 billion worth of IBIT shares, making it the dominant part of its Bitcoin ETF investments. In addition, Goldman Sachs has acquired $374 million in shares of the Fidelity Wise Origin Bitcoin Fund (FBTC), further expanding its footprint in the Bitcoin investment landscape.

Minimal Exposure to Grayscale Bitcoin Trust

While Goldman Sachs has made significant allocations to IBIT and FBTC, its exposure to the Grayscale Bitcoin Trust ETF (GBTC) remains minimal. Another spot Bitcoin ETFs have gained preference from the banks because many financial institutions have chosen them instead of Grayscale’s fund.

The cryptocurrency sector maintains its reservation from Bitcoin ETFs while Goldman Sachs increases its connections with this market. During a CNN interview, Mr. David Solomon identified Bitcoin as a “speculative asset of intrigue” without threatening the position of the U.S. dollar. The financial institution cannot store cryptocurrencies under current regulatory rules so it selects Exchange-Traded Funds as an alternative way for institutional investors.

Organizations aside from Goldman Sachs have been raising their investment stakes in Bitcoin ETFs. Danian financial institutions Morgan Stanley together with Bank of America have acquired spot Bitcoin ETF shares to benefit their clients. Traditional financial acceptance of Bitcoin continues to grow as evidenced by its increasing presence in banking institutions even though regulatory challenges remain.

Goldman Sachs Has Modified Its Stance About Bitcoin Assets Since 2020

Goldman Sachs publicly revealed its Bitcoin ETF investments in August 2024 when its holdings reached $418 million. The Asset & Wealth Management division of the bank under its Investment Officer Sharmin Mossavar-Rahmani had stated Bitcoin would not qualify as an investment asset class and client interest remained minimal. The bank’s newly submitted filing shows a strategic change because Bitcoin ETF demand from institutions keeps increasing.