Goldman Sachs Ramps Up Bitcoin ETF Holdings

Goldman Sachs, despite being previously critical of Bitcoin, is now disclosing significant holdings in Bitcoin exchange-traded funds.

Goldman Sachs has disclosed a significant increase in its Bitcoin exchange-traded fund (ETF) holdings, according to its Thursday 13F filing with the U.S. Securities and Exchange Commission (SEC).

The multinational investment bank now holds U.S. spot Bitcoin ETF shares to the tune of approximately $710 million, as per its latest report for the quarter ending September 30.

For investors, Goldman Sachs boosting its Bitcoin ETF holdings is a strong indication that institutional demand in cryptocurrencies is gathering momentum.

Goldman Sachs Ramps Up Bitcoin ETF Holdings

Goldman Sachs, despite being previously critical of Bitcoin, is now revealing substantial holdings in Bitcoin exchange-traded funds.

In a Nov. 14 SEC filing, the financial services company discloses having positions in eight out of the 11 BTC ETFs in the United States. Goldman Sachs' largest spot Bitcoin ETF holdings were 12.7 million shares of BlackRock's iShares Bitcoin Trust, valued at $461 million. This marks an over 82% increase from its last filing in August of 6.9 million shares, valued then at $281 million.

Goldman Sachs is now the second-largest holder of the IBIT fund, after Millenium Management.

The bank's latest quarterly holdings report also disclosed expanding its positions in other major Bitcoin ETFs. Goldman Sachs now holds more than 1.7 million shares in Fidelity's FBTC, to the value of $95.5 million — a 12% increase.

The investment bank also boosted its stake in Grayscale's GBTC by 115%, bringing its holdings to over 1.4 million shares, to the value of $72 million. Additionally, Goldman's shares in Bitwise's BITB now stand at 650,961, valued at $23 million.

The increase in Goldman Sach's spot BTC ETF investments comes as the newly launched products enjoy striking success. Just last week, BlackRock's IBIT surpassed its long-established iShares Gold fund in assets under management, a huge milestone given that IBIT debuted only in January.

Goldman Sachs Was Once A Bitcoin Skeptic

Before entering the Bitcoin ETFs in Q2 of 2024, Goldman Sachs was better known for its harsh criticism of the flagship cryptocurrency.

In 2020, the bank slammed Bitcoin and other cryptocurrencies, arguing that they "aren't an asset class" and didn't qualify as a "suitable investment" for its clients.

Despite Goldman Sachs launching its BTC derivatives trading desk in May 2021, some of its top executives continued to be skeptical about crypto, including the chief investment officer of the bank's Wealth Management unit, Sharmin Mossavar-Rahmani.

Speaking to the Wall Street Journal in April, Sharmin said that Goldman's clients were not interested in crypto. "We do not think it is an investment asset class. We're not believers in crypto," she stated at the time.