"Financial Hot Spots Tracking" Goldman Sachs increased its holdings of Bitcoin ETF, and its institutional strategy surfaced. Although Goldman Sachs increased its holdings of Bitcoin ETF, it does not mean that it adopts a one-sided long strategy in the mar

"New trend of Wall Street: Goldman Sachs increase its holdings of Bitcoin ETFs, institutional strategies surface" Institutional funds on Wall Street are accelerating their layout of crypto assets. Goldman Sachs' 13F documents submitted by the end of 2024 show that its Bitcoin holdings are significant Growth, especially in the allocation of Bitcoin ETFs, has attracted widespread attention from the market. This investment is not a simple market speculation, but a well-thought-out institutional strategy, reflecting the change in attitudes of traditional financial institutions towards the Bitcoin market. Details of Goldman Sachs' holdings: Focus on Bitcoin ETFs. According to the latest disclosures, Goldman Sachs holds $288 million in Fidelity Bitcoin ETF and $1.3 billion in BlackRock Bitcoin ETF. ETF, or Exchange-Traded Fund, is a fund that can be traded on the securities market, allowing investors to gain market exposure without directly holding Bitcoin. This investment method provides higher liquidity and compliance, while reducing the regulatory and custody risks brought about by direct holding of Bitcoin. Goldman Sachs strategy: It’s not just “going long”. Although Goldman Sachs has increased its holdings in Bitcoin ETFs, this does not mean that it adopts a one-sided long strategy in the market. Goldman Sachs also holds more than $600 million in Bitcoin ETF put options, according to the 13F document. Put Options give holders the right to sell assets at a certain price at a certain time in the future. This strategy is often used to hedge the risk of price declines. Cryptocurrency analyst James Van Straten pointed out that Goldman Sachs' holdings are not net longs, but adopt more complex risk hedging and arbitrage strategies. This type of trading method is often called "delta neutral strategy", which means reducing the impact of market volatility by holding both spot and derivatives to achieve stable returns. This shows that Goldman Sachs' layout is not betting on rising Bitcoin prices, but seeking to achieve risk-controllable returns amid market volatility. Goldman Sachs’ approach is not limited to itself, but may become part of a broader market trend. Other large asset managers, such as JPMorgan Chase and Morgan Stanley, may adopt similar trading strategies and disclose relevant positions in future 13F documents. The entry of institutional funds will have a profound impact on the Bitcoin market: Market maturation – Institutional investors tend to use complex financial instruments such as ETFs and options, which will increase market liquidity and reduce extreme volatility. Enhanced risk management capabilities - the participation of institutional funds has brought more advanced hedging and arbitrage strategies, making market prices no longer dominated by retail trading sentiment. Compliance process accelerates – As banks and asset management companies actively participate in Bitcoin ETFs, regulators may accelerate the improvement of relevant regulations to provide a more stable development environment for the crypto market. Will Bitcoin ETFs become the "new favorite" of traditional finance? Market demand has grown rapidly since the Securities and Exchange Commission (SEC) approved the first batch of Bitcoin spot ETFs in January 2024. ETFs solve many problems faced by traditional investors, including custody risks, tax compliance, transaction convenience, etc. Therefore, more and more institutions choose to participate in the Bitcoin market through ETFs rather than directly holding Bitcoin. However, this trend has also brought new problems. For example, ETF trading may lead to financial derivation in the Bitcoin market, allowing price fluctuations to no longer be entirely determined by supply and demand, but are affected by ETF capital flows, hedging trading and institutional strategies. Goldman Sachs' strategy shows that the Bitcoin market is gradually evolving from a highly volatile asset dominated by retail investors to a tool for institutional investors to manage risks and optimize returns. As more traditional financial giants join this track, Bitcoin’s market structure and pricing logic will also change, and investors need to have a deeper understanding of the operating model of institutional funds to grasp future market trends. In the future, with the changes in the regulatory environment and the increase in market participants, it remains to be further observed whether Bitcoin ETFs will become the standard configuration for institutional investment portfolios. But what is certain is that the institutionalization process of the Bitcoin market is irreversible. Thanks for watching, we see you all. Risk Warning: The remarks in the video can only represent personal opinions and cannot be used as investment advice. Chart analysis is only used to learn how to view indicators and cannot be used in real trading. Investment is risky and not suitable for everyone. All transactions will have the possibility of a complete loss, even exceeding the personal financial ability. You must contact your legal registered financial adviser before investing and cannot make any decisions based on the comments and charts in the video.