Goldman Sachs Invests More Than $400 Million in Bitcoin Exchange-Traded Funds

Goldman Sachs has disclosed its ownership of positions in seven of the 11 bitcoin exchange-traded funds (ETFs) in the U.S., as per a recent 13F filing. This move comes as a notable shift from the bank’s previous stance on cryptocurrencies. The investment bank, which had previously expressed skepticism towards crypto assets, now holds significant stakes in various BTC ETFs.

Among its holdings, the largest position held by Goldman Sachs is in the iShares Bitcoin Trust (IBIT) valued at $238.6 million. This is followed by investments in Fidelity’s Bitcoin ETF (FBTC) at $79.5 million, Invesco Galaxy’s BTC ETF (BTCO) at $56.1 million, and Grayscale’s GBTC at $35.1 million. Additionally, the bank also has smaller positions in BITB, BTCW, and ARKB.

BTC ETFs saw positive flows during Tuesday’s U.S. trading session, with a daily inflow of $4.39 million recorded, according to data from SoSoValue. The bank’s participation in these ETFs has been highlighted by Mathew McDermott, the global head of digital assets at Goldman Sachs, as a significant milestone for the industry. McDermott emphasized the psychological impact of BTC ETFs, describing them as a pivotal moment in the sector’s evolution.

During the recent CoinDesk Consensus 2024 event in Austin, McDermott underscored the success of the bitcoin ETF, labeling it as remarkable. He also shared insights into the bank’s digital asset desk’s focus on asset digitization and the potential for transforming aspects of the financial system to operate more efficiently.

In contrast to its current position, Goldman Sachs had previously indicated a lack of interest in cryptocurrencies. Sharmin Mossavar-Rahmani, the chief investment officer of the bank’s Wealth Management unit, had stated earlier that the institution did not view crypto as an investment asset class and expressed disbelief in the sector.

Goldman Sachs’ evolving stance on crypto assets, particularly its significant investments in BTC ETFs, reflects a broader institutional shift towards digital assets. The bank’s strategic positioning in these funds signals a growing acceptance and recognition of the potential transformative impact of cryptocurrencies within the financial landscape.