According to the filing, Goldman Sachs raised its Ether ETF investments from $22 million to $476 million.
With a 2,000% growth in its Ether ETF holdings in Q4 2024, investment behemoth Goldman Sachs has significantly expanded its exposure to cryptocurrency exchange-traded funds (ETFs).
According to a Form 13F filing with the Securities and Exchange Commission (SEC) on February 11, the company has also increased its interest in the Bitcoin ETF to more than $1.5 billion.
According to the filing, Goldman Sachs raised its Ether ETF investments from $22 million to $476 million.
Goldman Sachs Divides Holdings in Ether ETFs Among Grayscale, Fidelity, and BlackRock
Goldman’s investments are split nearly evenly between the Fidelity Ethereum Fund (FETH) and BlackRock’s iShares Ethereum Trust (ETHA), with an extra $6.3 million going to the Grayscale Ethereum Trust ETF (ETHE).
At the same time, the bank’s holdings of Bitcoin ETFs increased by 114% to $1.52 billion, more than double.
This includes $288 million in Fidelity’s Wise Origin Bitcoin Fund (FBTC) and $1.28 billion in shares of BlackRock’s iShares Bitcoin Trust (IBIT), a 177% increase from Q3.
Additionally, Goldman Sachs has $3.6 million in Grayscale Bitcoin Trust (GBTC) investments.
With Goldman’s crypto ETF holdings ‘ steep growth, Bitcoin and Ether have seen notable price gains.
According to CoinGecko data, from the beginning and end of Q4 2024, Bitcoin (BTC) increased by 41%, and Ether (ETH) increased by 26.3%.
In a notable move toward more significant, more reputable funds like BlackRock and Fidelity, Goldman sold off its holdings in ETFs from Bitwise, WisdomTree, Invesco-Galaxy, and ARK-21Shares.
In Q2 2024, Goldman made its first foray into the spot crypto ETF market by investing $418 million in Bitcoin ETFs.
Its most recent action highlights Wall Street’s increasing embrace of cryptocurrencies, bolstered by a more benevolent regulatory landscape.
Despite its growing exposure, Goldman has long been dismissive of Bitcoin and cryptocurrency as an asset class.
The bank rejected cryptocurrencies as a feasible investment in 2020, claiming they were “not a suitable asset class” for its customers.
This position was reaffirmed in April 2024 by Sharmin Mossavar-Rahmani, CIO of Goldman’s Private Wealth Management, who said, “We’re not believers in crypto,” likening the current cryptocurrency boom to the tulip craze of the 17th century.
Goldman Examines Its Own Platform for Trading Cryptocurrencies
Goldman is embracing blockchain and digital assets despite prior misgivings.
Goldman Sachs is thinking of creating its cryptocurrency platform, which would let institutional partners exchange financial instruments using blockchain technology, according to a November 2024 Bloomberg story.
David Solomon, the CEO of Goldman Sachs, stated last month that he thinks Bitcoin would never be able to match the US currency.
In an interview with Andrew Ross Sorkin of CNBC in Davos, Solomon characterized Bitcoin as a speculative asset.
It cannot, he said, overtake the dollar, which he identified as the leading global reserve currency.
“I’m a big believer in the US dollar at the end of the day,” the CEO stated Wednesday. Bitcoin is a speculative asset that is both intriguing and risky. However, there isn’t much more to question about this.
He said, “I do not believe Bitcoin threatens the US dollar.”
