Goldman Sachs Increases Bitcoin ETF Holdings Across Multiple Funds

TLDR

• Goldman Sachs now holds $461M in BlackRock’s IBIT, an 83% increase
• Currently second-largest IBIT holder after Millennium Management
• Increased GBTC holdings by 116% and BITB by 156%
• Added $95.5M position in Fidelity’s FBTC ETF
• Diversified across multiple Bitcoin ETFs including Invesco/Galaxy, WisdomTree, and Ark/21Shares

Goldman Sachs has made substantial increases to its cryptocurrency exchange-traded fund (ETF) holdings, with new SEC filings showing expanded positions across multiple Bitcoin funds.

The investment bank now holds 12.7 million shares of BlackRock’s iShares Bitcoin Trust (IBIT), valued at $461 million.

This latest investment represents an 83% increase from Goldman’s previous position of 6.9 million shares. The move places Goldman Sachs as the second-largest holder of IBIT shares, behind only Millennium Management’s $844 million position and ahead of Capula Management’s $253 million stake.

As an authorized participant for BlackRock’s Bitcoin ETF, Goldman Sachs has shown increasing confidence in the cryptocurrency investment vehicle by expanding its holdings across various funds. The bank’s investment strategy appears to favor diversification across multiple Bitcoin ETF providers.

The investment bank has notably increased its position in Fidelity’s Wise Origin Bitcoin ETF (FBTC). Goldman now holds over 1.7 million FBTC shares, worth approximately $95.5 million, marking a 13% increase from their previous filing.

In addition to these holdings, Goldman Sachs has made substantial increases in other Bitcoin ETF positions. The bank’s investment in Grayscale’s Bitcoin Trust (GBTC) has grown by 116%, now holding over 1.4 million shares valued at $71.8 million.

The firm’s investment in Bitwise’s Bitcoin ETF (BITB) shows an even larger percentage increase. Goldman now owns 650,961 BITB shares worth $22.5 million, representing a 156% increase from their previous position.

These investments demonstrate Goldman’s strategic approach to gaining exposure to Bitcoin through regulated investment vehicles. The bank has chosen to spread its investments across multiple providers rather than concentrating in a single fund.

The diversification strategy extends beyond the major players, as Goldman Sachs has also taken positions in funds managed by other providers. These include stakes in ETFs from Invesco/Galaxy, WisdomTree, and Ark/21Shares, though specific values for these holdings were not detailed in the report.

The timing of these investments follows the January 2024 approval of spot Bitcoin ETFs by the Securities and Exchange Commission. This regulatory green light opened the door for traditional financial institutions to gain direct exposure to Bitcoin through regulated investment products.

The expansion of Goldman’s Bitcoin ETF holdings comes during a period of increased institutional interest in cryptocurrency investments. The bank’s position as an authorized participant for BlackRock’s ETF puts it in a unique position to facilitate the creation and redemption of ETF shares.

The total value of Goldman’s Bitcoin ETF investments now exceeds $650 million across all funds. This represents one of the largest institutional positions in Bitcoin ETFs since their approval earlier this year.

Recent trading volumes and asset flows into Bitcoin ETFs have shown sustained interest from institutional investors. The variety of ETF options has allowed firms like Goldman Sachs to build diverse positions across multiple fund providers.

As reported in the SEC filings, these investments represent a marked increase from Goldman’s previous positions. The percentage increases across different funds range from 13% to 156%, showing varying levels of conviction in different ETF products.

The bank’s latest filings reveal these positions as of early 2024, though market values may have fluctuated since the time of reporting due to Bitcoin price movements.

Goldman’s expanded investment follows broader market adoption of Bitcoin ETFs, with total assets under management across all spot Bitcoin ETFs continuing to grow since their launch.