Goldman Sachs Increases Cryptocurrency Investments
Recent filings indicate that Goldman Sachs has been actively expanding its presence in the digital asset market through investments in Bitcoin and Ethereum exchange-traded funds (ETFs). The company’s latest 13F report reveals that, by the close of December, its holdings in crypto-related investments exceeded US$2 billion.
Strategic Bitcoin ETF Investments and Options Activity
During the fourth quarter of 2024, Goldman Sachs significantly increased its investments in Bitcoin ETFs. By December 31, the bank’s exposure to Bitcoin had grown to approximately US$1.56 billion, more than doubling the US$710 million reported in the previous quarter. A significant portion of this increase came from a US$1.2 billion investment in BlackRock’s IBIT, complemented by US$288 million in Fidelity’s FBTC, and a smaller allocation to Grayscale’s GBTC.
In addition to direct ETF holdings, Goldman Sachs actively engaged in options trading related to these spot ETFs, amassing nearly US$760 million in trading positions. Notably, the firm recorded several put options, including one valued at over US$527 million through IBIT. Other put positions were executed using different ETF products. Furthermore, previous investments in certain funds and trusts were completely divested, signifying a strategic realignment of their cryptocurrency portfolio.
Goldman Sachs also made adjustments to its individual ETF share holdings. The number of shares held in BlackRock’s IBIT saw an increase of 88.5%, and those in Fidelity’s FBTC rose by 105.2%. Conversely, the shares held in Grayscale’s GBTC experienced a dramatic reduction of 97%.
Substantial Growth in Ethereum ETF Holdings
Goldman Sachs is also capitalizing on the expanding market for Ethereum ETFs. According to the 13F filing, the firm’s investment in spot Ethereum ETFs rose sharply from a modest US$25.1 million at the end of September to approximately US$476.5 million by December 31 – a nearly 19-fold increase. This growth was primarily driven by allocations of US$234.7 million to Fidelity’s FETH and US$235.5 million to BlackRock’s ETHA, along with a smaller investment in Grayscale’s Ethereum mini trust.
Despite this rapid growth, Ethereum still represents approximately 30% of the firm’s total crypto-related exposure, indicating a diversified approach to its digital asset investments.
These recent adjustments to both Bitcoin and Ethereum ETF positions demonstrate Goldman Sachs’ evolving strategy in response to the dynamic cryptocurrency market. These diversified investment decisions are intended to strategically position the firm as market conditions continue to evolve.
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