Goldman Sachs has significantly increased its exposure to Bitcoin ETFs, solidifying its position as one of the leading institutional investors in the crypto space.
According to recent filings, the investment bank boosted its stake in BlackRock’s iShares Bitcoin Trust (IBIT) to $461 million, reflecting an 83% jump from its prior holdings. This positions Goldman as the second-largest IBIT shareholder, now owning 12.7 million shares compared to its earlier 6.9 million shares.
Bitcoin ETF investments see substantial growth
Goldman Sachs has also made notable increases in other Bitcoin ETFs, diversifying its crypto-focused portfolio. The firm expanded its stake in Fidelity’s Wise Origin Bitcoin ETF to over 1.7 million shares, valued at approximately $95.5 million, marking a 13% increase. Additionally, its holdings in Grayscale’s Bitcoin Trust (GBTC) surged by 116%, bringing its position to 1.42 million shares, worth an estimated $71.8 million.
The bank’s interests extend to other major Bitcoin funds, including Invesco, WisdomTree, and Ark/21Shares. Goldman owns more than 940,000 shares of BTCO, valued at $59.7 million, and 650,000 shares in BITB, worth $22.5 million. This diverse approach highlights the bank’s commitment to leveraging the growing popularity and demand for Bitcoin investment vehicles.
Bitcoin price hits record highs
Bitcoin’s value has continued to climb, reaching an all-time high of $93,434 on November 13. Although the cryptocurrency has experienced a slight correction, it remains strong at an average price of $88,137 at the reporting time. The surge has pushed Bitcoin’s market capitalization past Saudi Aramco, making it the seventh-largest global asset with a dominance rate of 61.38%.
Market analysts attribute Bitcoin’s rapid price gains to substantial inflows into Bitcoin ETFs, which have totaled $28.2 billion so far this year. Over the past six days alone, $4.7 billion poured into these funds, with BlackRock’s iShares Bitcoin Trust driving trading activity, amassing $13 billion in volume over three days.
ETF inflows reverse after record gains
Despite a remarkable week of inflows, Bitcoin ETFs faced a sharp downturn on November 14, posting net outflows of $400.7 million. Fidelity’s Bitcoin ETF saw the largest withdrawals at $179.2 million, ARK & 21Shares losing $161.7 million, and Bitwise’s funds shedding $113.9 million. Grayscale products also experienced $74.9 million in outflows.
However, IBIT stood out as an exception, continuing its positive trend with $126.5 million in net inflows. VanEck’s HODL ETF also managed to gain $2.5 million, demonstrating resilience amid the broader market pullback. Goldman Sachs’s expanding investments in Bitcoin ETFs reflect growing confidence in the cryptocurrency’s long-term potential, even as market fluctuations shape investor sentiment.