Goldman Sachs Bets Big on Bitcoin – $1.4 Billion in BlackRock’s ETF!

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Well, well, well, look who’s diving into the crypto pool: Goldman Sachs. And no, they’re not just dipping their toes in – they’ve cannonballed in with a whopping $1.4 billion through BlackRock’s iShares Bitcoin Trust (IBIT), according to their oh-so-reliable SEC filing. How did they do it? With 30.8 million shares, naturally. Take that, mere mortals!

In case you were wondering, this marks a 28% increase from their last position of 24 million shares. Basically, Goldman just shoved other big investors like Brevan Howard to the back of the line. No need to apologize; it’s just how they roll in the world of crypto.

And it’s not just Goldman making waves here. Other hedge fund big shots like Jane Street, D.E. Shaw, and Symmetry Investments are also hopping on the IBIT train. Just a little reminder: when hedge funds start sniffing around, you know things are getting real. Sorry, peasants, the sharks are circling.

Smart money goes full risk-on

Goldman isn’t just dipping a toe in the pool; they’ve jumped in headfirst. By the end of 2024, they’re looking at a staggering $2.05 billion in crypto ETF holdings. That includes about $1.3 billion in BlackRock’s Bitcoin ETF and a cool $300 million in Fidelity’s. Plus, let’s not forget the nearly half a billion bucks sitting in Ethereum ETFs, split evenly between BlackRock and Fidelity. Guess they’ve made their peace with the whole “volatile asset” thing.

And get this: compared to the last quarter’s $720 million, that’s a 50% surge in their crypto ETF exposure. If you don’t think that’s impressive, maybe try running a bank for a day and let me know how it goes.

Goldman now expects core PCE to rise to 3.5% this year versus 3.0% under previous assumptions for less aggressive tariffs. They expect the Fed to cut three times in the second half of the year to address the hit to growth and employment

— Wu Blockchain (@WuBlockchain) March 31, 2025

So, while they’re over here accumulating crypto assets like they’re going out of style, Goldman’s also giving us a peek into their crystal ball: a forecast for core PCE inflation to rise to 3.5% this year. You heard it here first: the Federal Reserve might need to make some cuts in interest rates. That’s right, three cuts. As if the crypto rollercoaster wasn’t enough, we might be in for a wild ride of financial shenanigans.

Goldman’s moves are perfectly aligned with their new macroeconomic stance. Why? Because they’re expecting the Fed to slash interest rates three times in the second half of 2024, hoping that’ll boost growth and employment. Ah, yes, the kind of thinking that only billion-dollar firms can afford. The rest of us are over here trying to figure out how to save for a vacation.

Meanwhile, BlackRock isn’t just sitting around counting their crypto cash. Oh no. They’re busy talking to regulators, trying to shape the future of digital finance. They had a little sit-down with the SEC’s Crypto Task Force on May 9 to talk about incorporating staking into crypto ETPs and the tokenization of traditional securities. You know, just casual stuff that will change the entire financial landscape.

So, what does this all mean? Well, the stars are aligning between traditional finance and crypto. Could this be the beginning of a massive wave of institutional adoption? Only time – and, of course, more SEC filings – will tell.

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2025-05-10 13:27