Goldman Sachs has significantly impacted the bitcoin market by boosting its holdings in Ethereum and Bitcoin exchange-traded funds (ETFs). The investment banking behemoth increased its Ethereum ETF holdings by 2,000% in the fourth quarter of 2024, totaling $476 million. Its Bitcoin ETF holdings increased by 114%, topping $1.5 billion.
According to its most recent regulatory filing with the Securities and Exchange Commission (SEC) on February 11, Goldman Sachs allocated its Ethereum ETF holdings essentially between BlackRock’s iShares Ethereum Trust (ETHA) and Fidelity’s Ethereum Fund (FESH), which included an additional $6.3 million invested in the Grayscale Ethereum Trust ETF (ETHE).
The bank also expanded its Bitcoin ETF portfolio by purchasing $1.28 billion of BlackRock’s iShares Bitcoin Trust (IBIT), representing a 177% increase from the previous quarter. Goldman Sachs maintained a $3.6 million position in the Grayscale Bitcoin Trust (GBTC) and invested $288 million in Fidelity’s Wise Origin Bitcoin Fund (FBTC).
Goldman’s crypto ETF expansion coincided with a phenomenal market performance. The value of these investments is increasing, with Bitcoin up 41% and Ethereum up 26.3% from the start to the end of Q4 2024.
Strategically, Goldman dropped its investments in Bitcoin ETFs from Bitwise, WisdomTree, Invesco-Galaxy, and ARK-21 Shares in favor of larger, more established funds such as BlackRock and Fidelity.
Goldman Sachs will make its first foray into the cryptocurrency ETF market in Q2 2024, investing $418 million in Bitcoin ETFs. With a more favorable legal climate, its most recent purchases reflect a larger trend of institutional use of digital assets.
Goldman Sachs has generally been skeptical about Bitcoin and digital assets as an asset class, despite its expanding involvement in cryptocurrency ventures. In 2020, the bank dismissed bitcoin as a bad investment. “We’re not believers in crypto,” Goldman’s Private Wealth Management division’s Chief Investment Officer, Sharmin Mossavar-Rahmani, said in April 2024, comparing the cryptocurrency market to the speculative tulip mania of the 1600s.
Goldman’s position on digital assets, however, appears to be shifting. According to sources from November 2024, the bank is looking into launching its own cryptocurrency trading platform, aimed at institutional partners who want to trade financial instruments using blockchain networks.
David Solomon, CEO of Goldman Sachs, has also discussed the role Bitcoin plays in global finance. Speaking at Davos in January 2025, he emphasized his belief that the US dollar is the world’s primary reserve currency while also describing Bitcoin as an attractive speculative asset.
Goldman Sachs’ most recent activities reflect a growing acceptance of cryptocurrency investments among institutional investors, which supports the growing importance of digital assets in the finance sector.
