Goldman Sachs Boosts Bitcoin ETF Holdings by 121%

Goldman Sachs, the renowned Wall Street investment bank, has significantly increased its holdings in Bitcoin exchange-traded funds (ETFs) during the fourth quarter of 2024, according to its latest 13F filing with the U.S. Securities and Exchange Commission (SEC). The bank's substantial investment in Bitcoin ETFs signals a growing institutional interest in the cryptocurrency market.

The Wall Street giant now holds a total of $1.57 billion across various Bitcoin ETFs, marking a 121.1% increase from the $710 million reported in the third quarter. The bank's largest exposure lies in BlackRock's iShares Bitcoin Trust (IBIT), where it now holds 24.07 million shares worth $1.27 billion. This represents an 88% jump in shares since the last filing, indicating Goldman Sachs' bullish stance on Bitcoin.

Goldman Sachs' expanded positions in Bitcoin ETFs point to a robust shift in institutional investment towards the cryptocurrency. The filing also reveals that the bank has added $288 million to Fidelity's Wise Origin Bitcoin ETF (FBTC), a 105% increase from the previous quarter. Additionally, Goldman Sachs holds $3.6 million through Grayscale's Bitcoin Trust (GBTC).

Alongside its ETF holdings, Goldman Sachs has reported substantial options trading positions, with puts and calls totaling $760 million. The bank holds a $527 million put position and an $84 million put through IBIT and FBTC, respectively, as well as a $157 million call position through IBIT. These options allow Goldman Sachs to protect itself from potential losses by betting on price declines (puts) while also positioning itself to benefit if prices rise further (calls).

Despite its conviction in the two most prominent U.S. spot Bitcoin ETFs, Goldman Sachs closed minor positions in others, including ARK 21Shares' ARKB, Bitwise's BITB, Grayscale's mini Bitcoin trust, Invesco Galaxy's BTCO, and WisdomTree's BTCW. This strategic move suggests that the bank is focusing its investments on the most liquid and well-established Bitcoin ETFs.

Ethereum also saw a rise in Goldman Sachs' portfolio, with the firm increasing its Ethereum exposure to $4