Goldman Sachs has significantly increased its Bitcoin ETF investment, currently exceeding $1.5 billion, according to its latest filing with the Securities and Exchange Commission (SEC). It also reports an additional $760 million exposure to Bitcoin ETF options.
Banks are steadily purchasing more Bitcoin ETFs, indicating a growing institutional interest in Bitcoin.
As of December 31, 2024, Goldman Sachs had $1.56 billion in these investment vehicles, up from $710 million in the last quarter. This is an increase of over 120%.
Most of Goldman’s Bitcoin ETF investments are found in BlackRock’s iShares Bitcoin Trust (IBIT), which holds 24.07 million shares worth approximately $1.27 billion. This is an 88% increase from the last quarter.
It also owns $288 million in Fidelity’s Wise Origin Bitcoin Trust (FBTC), an up 105% increase from the last quarter.
Related: Goldman Sachs will become the second largest institution owner of BlackRock IBIT
Goldman Sachs also uses options trading. There are $157 million in total options, $760 million in IBIT put options, $527 million in IBIT call options. This allows banks to hedge risks while playing the market.
They also closed positions in smaller ETFs, including ARKB from ARK 21Shares, BITB from Bitwise, BTCO from Invesco Galaxy and BTCW from WisdomTree. This suggests a more focused approach, favoring the largest and most liquid Bitcoin investment products.
Goldman Sachs has increased its Bitcoin position during extreme market volatility. During this period, Bitcoin rose to an all-time high of $109,000 just before the inauguration of the US president.
According to Apollo, Bitcoin ETF’s total market capitalization is currently above $114 billion, with BlackRock’s IBIT leading the $56.5 billion managed assets.
Despite being involved in Bitcoin, Goldman Sachs CEO David Solomon is still cautious about digital assets.
In a recent interview, Solomon called Bitcoin a “interesting speculative asset,” but said it didn’t threaten the US dollar. He also said that banks cannot hold Bitcoin directly. “If the regulatory structure changes, we will evaluate it,” Solomon said at the next Reuters meeting.
Goldman’s exposure to Bitcoin is part of a broader trend in institutional adoption. Other major banks like Morgan Stanley and Bank of America are also buying Bitcoin ETFs for their clients.
Goldman’s latest move means Wall Street has reversed its Bitcoin investment. The company’s Bitcoin ETF position and options trading demonstrates that it takes a measured approach to digital assets.
As regulatory consultations are underway and institutional demand increases, the Bitcoin investment environment is changing rapidly. Goldman may not own Bitcoin itself, but its growing ETF position means that institutional involvement is beginning to gain traction.
As BlackRock’s digital assets director said “Bitcoin adoption is still in its early stages,” the possibility of future facility investments being increased when large companies like Goldman Sachs come in There is.