Goldman Sachs Boosts Bitcoin ETF Holdings to $1.5 Billion

Goldman Sachs, a leading global investment bank, has significantly increased its Bitcoin ETF holdings to $1.5 billion in the fourth quarter of 2024, according to recent SEC filings. This move represents a substantial 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. Additionally, Goldman Sachs' investment in Fidelity's Wise Origin Bitcoin Fund (FBTC) grew by 105%, reaching $288 million. The firm also 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.

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. 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.

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