TLDR:
- Goldman Sachs has invested over $1.83 billion in Bitcoin and Ethereum ETFs, with $1.63 billion in Bitcoin ETFs and $196.3 million in Ethereum ETFs
- The bank holds 24 million shares of BlackRock’s iShares Bitcoin Trust (IBIT) worth $1.33 billion, making it their largest crypto ETF position
- Their ETF portfolio includes $300 million in Fidelity’s Bitcoin fund (FBTC) and $191 million in Fidelity’s Ethereum fund (FETH)
- The bank maintains a balanced risk approach with $611 million in put options across IBIT and FBTC
- While investing heavily in crypto ETFs, Goldman Sachs remains restricted from directly holding cryptocurrencies as a regulated bank
Goldman Sachs has invested $1.83 billion in cryptocurrency exchange-traded funds (ETFs), according to recent Securities and Exchange Commission (SEC) filings. The investment bank now holds $1.63 billion in Bitcoin ETFs and $196.3 million in Ethereum ETFs.
The bank’s largest position is in BlackRock’s iShares Bitcoin Trust (IBIT), with 24,077,861 shares valued at $1.33 billion. This investment represents a 88% increase during the fourth quarter of 2024, showing the bank’s growing interest in cryptocurrency exposure through regulated investment vehicles.
Goldman Sachs has also invested heavily in other cryptocurrency funds. The bank holds 3,530,486 shares of the Fidelity Wise Origin Bitcoin Fund (FBTC) worth over $300 million, marking a 105% increase in their position. Additionally, they maintain 49,183 shares of the Grayscale Bitcoin Trust (GBTC) valued at $3.7 million.
The bank’s Ethereum ETF holdings include 7,024,747 shares of the Fidelity Ethereum Fund (FETH) worth $191.1 million. They have also invested in 200,000 shares of the Grayscale Ethereum Mini Trust ETF, valued at $5.1 million.
To manage risk, Goldman Sachs has implemented a complex options strategy. The bank holds IBIT call options worth $157 million, while maintaining put options valued at $527 million for IBIT and $84 million for FBTC.
Regulatory Change
These investments come after regulatory changes that opened the door for spot Bitcoin ETFs. The SEC’s approval of Bitcoin and Ethereum ETFs in 2024 created new opportunities for traditional financial institutions to participate in the cryptocurrency market through regulated products.
The bank’s approach shows a preference for major ETF products with higher trading volumes. During the fourth quarter of 2024, Goldman Sachs reduced several smaller cryptocurrency positions to focus on these larger, more established funds.
Goldman Sachs CEO David Solomon has explained the bank’s strategy regarding direct cryptocurrency investments. As a regulated banking institution, Goldman Sachs cannot own cryptocurrencies like Bitcoin directly. Instead, they provide client advice about these technologies while working within regulatory limits.
The bank’s quarter-by-quarter analysis shows steady growth in cryptocurrency-related positions. This growth pattern suggests ongoing confidence in the ETF structure as an investment vehicle for gaining cryptocurrency exposure.
Through these investments, Goldman Sachs has become one of the largest institutional holders of Bitcoin ETFs. Their approach demonstrates how traditional banks can participate in cryptocurrency markets while following regulatory frameworks.
The total value of Goldman’s cryptocurrency-related positions exceeds $2 billion when combining direct investments and options strategies. This figure includes both their ETF holdings and their options portfolio.
The bank’s investment strategy focuses on regulated investment vehicles rather than direct cryptocurrency ownership. This approach allows them to gain market exposure while maintaining compliance with banking regulations.
These moves align with broader market trends, as many institutional investors choose ETFs as a safer alternative to direct cryptocurrency purchases. The ETF structure provides exposure to cryptocurrency price movements without the complexities of direct ownership.
Goldman Sachs continues to provide advisory services for clients interested in cryptocurrency markets. While they cannot trade digital assets directly, they help clients understand and navigate these new technologies.
The most recent SEC filings show that Goldman Sachs maintains its balanced approach to cryptocurrency investment through a combination of ETF shares and options strategies.
