TLDR
Goldman Sachs has dramatically increased its Bitcoin ETF holdings to $1.5 billion in Q4 2024, with $1.27 billion in IBIT (88% increase) and $288 million in FBTC (105% increase)
The bank holds significant options positions totaling $760 million, including puts and calls through IBIT and FBTC
Goldman’s Ethereum exposure grew to $476.5 million, split between Fidelity’s FETH and BlackRock’s ETHA
Bitcoin reached a record high of $109,000 before the U.S. Presidential inauguration
CEO David Solomon maintains Bitcoin is not a threat to USD dominance and emphasizes need for regulatory changes
Goldman Sachs has expanded its cryptocurrency investments, with Bitcoin ETF holdings reaching $1.5 billion in the fourth quarter of 2024, according to recent SEC filings. The investment bank’s move represents a 121.1% increase from its $710 million position in the third quarter.
The bank’s largest investment is in BlackRock’s iShares Bitcoin Trust (IBIT), where it holds 24.07 million shares valued at $1.27 billion. This position marks an 88% increase from the previous quarter’s holdings.
The firm’s investment in Fidelity’s Wise Origin Bitcoin Fund (FBTC) also grew by 105%, reaching $288 million. Additionally, Goldman maintains a smaller position of $3.6 million in Grayscale’s Bitcoin Trust (GBTC).
Beyond direct ETF holdings, Goldman Sachs has established options trading positions totaling $760 million. These include a $527 million put position through IBIT, an $84 million put through FBTC, and a $157 million call position via IBIT.
The bank’s cryptocurrency portfolio now includes Ethereum exposure worth $476.5 million, showing a dramatic increase from $25.1 million in the previous quarter. This investment is split between Fidelity’s FETH and BlackRock’s ETHA, with holdings of $234.7 million and $235.5 million respectively.
While expanding its crypto holdings, Goldman Sachs has closed smaller positions in several other Bitcoin ETFs, including ARK 21Shares’ ARKB, Bitwise’s BITB, and WisdomTree’s BTCW.
The growth in Goldman’s crypto portfolio coincides with Bitcoin’s price performance. The cryptocurrency reached a record high of $109,000 before the U.S. Presidential inauguration, with its value increasing by 40.6% during the fourth quarter.
Goldman Sachs CEO David Solomon has maintained a measured stance on cryptocurrency. He recently stated that Bitcoin does not pose a threat to the U.S. dollar’s dominance and described it as a speculative asset.
The bank’s infrastructure development around digital assets continues, though Solomon emphasized that regulatory changes are needed before direct trading of Bitcoin and Ethereum can begin.
The timing of Goldman’s increased investment aligns with broader market trends. The cryptocurrency market has seen renewed interest following the U.S. Presidential election, with Bitcoin’s gains partly attributed to growing institutional involvement.
The SEC is currently reviewing proposals that could impact the ETF market, including BlackRock’s suggestion for in-kind Bitcoin ETF redemptions. This change would allow authorized participants to receive Bitcoin directly instead of cash during redemptions.
Market data shows that while Bitcoin has experienced strong growth, Ethereum’s performance has been less robust. The second-largest cryptocurrency’s value compared to Bitcoin has declined by 13.8% over the past month, reaching a 4-year low.
The bank’s investment strategy includes both defensive and growth positions through its options trading. The put options provide protection against potential price decreases, while call options allow for profit if prices continue to rise.
These investments are documented in Goldman’s 13F filings, which are mandatory reports required by the SEC for institutional investment managers with equity assets exceeding $100 million.
The price movements in both Bitcoin and Ethereum have influenced the value of Goldman’s holdings. While Bitcoin saw a 40.6% increase, Ethereum gained 26.2% from the start to the end of Q4, according to CoinGecko data.
