Stakes in seven of the 11 bitcoin ETFs are owned by Goldman Sachs.
Earlier, the bank had said, “We’re not believers in crypto.”
According to a 13F filing, Goldman Sachs holds positions in a variety of Bitcoin exchange-traded funds.
The investment bank, in its quarterly 13-F report, revealed that it holds stakes in seven of the 11 available BTC ETFs in the U.S.
Its biggest holding is the iShares Bitcoin Trust,
$238.6 million, followed by Fidelity’s Bitcoin ETF, $79.5 million, $56.1 million of Invesco Galaxy’s BTC ETF, and $35.1 million in Grayscale’s GBTC. It also has small positions in BITB, BTCW, and ARKB.
BTC ETF flows continued green during the U.S. Tuesday trading day, with SoSoValue recording $4.39 million in daily inflow.
According to Mathew McDermott, global head of digital assets at the bank, speaking onstage at CoinDesk’s Consensus 2024 festival in Austin, the BTC ETFs represented a “big psychological turning point” for the industry.
“Obviously, the bitcoin ETF has just been an enormous success,” he said. The desk at Goldman Sachs dealing with digital assets is focused first and foremost on the digitization of assets.
“Institutions like ours actually see the potential in how it can transform—where parts of the financial system can operate in a much more efficient way,” he said also during Consensus.
Previously Goldman Sachs has said that its clients were not interested in crypto.
“We do not think it is an investment asset class,
” said Sharmin Mossavar-Rahmani, the chief investment officer of the bank’s Wealth Management unit, to the Wall Street Journal in April. “We’re not believers in crypto.
FAQs
1. What is a Bitcoin ETF?
- A Bitcoin Exchange-Traded Fund (ETF) is a financial product that tracks the price of Bitcoin and is traded on traditional stock exchanges. Instead of holding the actual Bitcoin, investors buy shares in the ETF, which aims to mirror the performance of the cryptocurrency.
2. Why did Goldman Sachs invest over $400 million in Bitcoin ETFs?
- Goldman Sachs likely invested in Bitcoin ETFs to provide its clients with exposure to Bitcoin while minimizing direct risk. ETFs allow institutional investors to enter the crypto market without dealing with the complexities of holding actual Bitcoin, such as custody and security issues.
3. How does Goldman Sachs’ involvement impact the crypto market?
- Goldman Sachs’ significant investment in Bitcoin ETFs is a sign of increased institutional acceptance of cryptocurrency. It helps legitimize Bitcoin as an asset class, potentially attracting more large investors to the market and contributing to the overall growth and stability of the crypto space.
4. What are the benefits of investing in a Bitcoin ETF compared to directly buying Bitcoin?
- Convenience: Bitcoin ETFs are traded on traditional stock exchanges, making them more accessible to investors who prefer conventional platforms.
- Regulation: ETFs are typically regulated by financial authorities, offering greater investor protection.
- Security: ETFs eliminate the need for individual investors to manage private keys and wallets, reducing the risk of theft or loss.
5. Does Goldman Sachs offer Bitcoin ETFs to its clients?
- Yes, Goldman Sachs offers Bitcoin ETF products to its clients as part of its broader strategy to provide exposure to cryptocurrencies in a regulated and secure manner.