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Goldman Sachs Increases Bitcoin ETF Holdings, Signaling Institutional Interest
Goldman Sachs has boosted its Bitcoin ETF holdings, highlighting a growing interest from institutional investors in cryptocurrency. This strategic move underscores the bank’s confidence in the future of digital assets and their potential market impact.
Goldman Sachs Expands Its Bitcoin ETF Holdings
Goldman Sachs (GS) has recently disclosed its significant positions in various bitcoin (BTC) exchange-traded funds (ETFs) through a 13F filing. According to the investment bank’s quarterly report, it holds stakes in seven out of the eleven BTC ETFs currently available in the U.S. market.
The largest of these holdings is in the iShares Bitcoin Trust (IBIT), valued at approximately $238.6 million. This is followed by Fidelity’s Bitcoin ETF (FBTC), which amounts to $79.5 million. Additionally, Goldman Sachs has invested $56.1 million in Invesco Galaxy’s BTC ETF (BTCO) and $35.1 million in Grayscale’s GBTC. The bank also maintains smaller positions in BITB, BTCW, and ARKB.
ETF flows have shown positive momentum, with Bitcoin ETFs recording an inflow of $4.39 million during the U.S. trading day on Tuesday, as reported by SoSoValue. This uptick in investment reflects growing institutional interest in Bitcoin assets.
During CoinDesk’s Consensus 2024 festival held in Austin, Mathew McDermott, the bank’s global head of digital assets, remarked that the introduction of BTC ETFs marks a “significant psychological turning point” for the cryptocurrency industry. “The bitcoin ETF obviously has been an astonishing success,” McDermott stated during his presentation. He emphasized that Goldman Sachs’ digital asset desk is primarily dedicated to exploring the digitization of assets.
McDermott further elaborated, stating that institutions like Goldman Sachs recognize the transformative potential of digital assets in enhancing the efficiency of various segments within the financial system. “We see how it can revolutionize the way parts of the financial system operate,” he added during his participation at Consensus.
Interestingly, Goldman Sachs has previously expressed skepticism regarding cryptocurrencies. In April, Sharmin Mossavar-Rahmani, the chief investment officer of the bank’s Wealth Management unit, conveyed to the Wall Street Journal, “We do not think it is an investment asset class. We’re not believers in crypto.” This evolution in perspective highlights the growing acceptance and integration of Bitcoin and other digital assets in traditional finance.