As a researcher with a keen interest in finance and technology, I find it fascinating to observe the evolving relationship between traditional financial institutions like Goldman Sachs and cryptocurrencies such as Bitcoin.
As a crypto investor, I’m excited to see that even a financial titan like Goldman Sachs – who were once skeptical about Bitcoin – have now revealed substantial investments in Bitcoin ETFs. This move signifies a shift in their stance towards digital currencies and could potentially pave the way for more institutional adoption of crypto assets.
According to a report submitted to the U.S. Securities and Exchange Commission on November 14, Goldman Sachs disclosed that it owned around $718 million worth of shares in eight Bitcoin Exchange-Traded Funds (ETFs).
The report disclosed a $461 million investment in BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust ETF (IBIT).
The most recent quarterly disclosure from the bank showed an expansion of $300 million in its Bitcoin ETF holdings compared to the previous quarter, representing a significant growth of 71%.
Goldman Sachs jumped into Bitcoin ETFs in Q2 2024
Goldman Sachs made its debut in the Bitcoin Exchange-Traded Fund (ETF) market during the second quarter, revealing their initial purchase of a Bitcoin ETF for approximately $418 million in August.
Goldman Sachs has not only invested $461 million in BlackRock’s IBIT, but it also owns approximately $96 million in Fidelity’s Wise Origin Bitcoin Fund (FBTC), $72 million in the Grayscale Bitcoin Trust ETF (GBTC), and around $60 million in the Invesco Galaxy Bitcoin ETF (BTCO).
Goldman Sachs also owns approximately $22.5 million in shares of Bitwise’s Bitcoin ETF (BITB), $3 million in ARK‘s 21Shares Bitcoin ETF (ARKB), close to $4 million in Grayscale’s Bitcoin Mini Trust ETF (BTC), and nearly $800,000 in the WisdomTree Bitcoin Fund (BTCW).
Goldman Sachs additionally disclosed investments worth about $22 million in Exchange Traded Funds (ETFs) linked to Ether (ETH), such as a $22.6 million investment in the Grayscale Ethereum Mini Trust ETF and another $2.6 million in the Fidelity Ethereum Fund.
Goldman Sachs execs used to heavily slam Bitcoin
As a researcher, I’m often engaged with the dynamic world of cryptocurrencies, and it’s no secret that Goldman Sachs, one of the titans in global investment banking, has been vocal about its past critiques towards Bitcoin.
In the year 2020, Goldman Sachs criticized Bitcoin and other cryptocurrencies, stating that they do not fit the category of traditional asset classes and are not considered appropriate investments for their clientele.
Despite the establishment of a Bitcoin derivatives trading desk by Goldman Sachs in May 2021, certain high-ranking executives within the company, including Sharmin Mossavar-Rahmani from Private Wealth Management, continue to express doubts about cryptocurrencies.
In an interview with The Wall Street Journal in April, Mossavar-Rahmani stated that Goldman Sachs’ clients haven’t shown significant enthusiasm for crypto investments, even during this year’s strong market rally.
As an analyst, I find myself expressing skepticism about cryptocurrencies as a viable investment class. In my view, the current crypto craze mirrors the tulip mania of the 1600s more than it does a sound financial decision. Personally, I do not share the optimism surrounding cryptocurrencies and believe they are not worth investing in.
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2024-11-15 14:51