Goldman Sachs Goes All-In on Bitcoin ETFs—$1.57 Billion and Counting

The majority of these funds—approximately 80% or $1.27 billion—have been allocated to BlackRock’s iShares Bitcoin Trust (IBIT), with the remaining amount distributed among competitors to diversify risk and optimize returns. For instance, around $288 million has been invested in Fidelity’s Wise Origin Bitcoin ETF (FBTC). This data was disclosed in Goldman Sachs' latest 13F filing with the U.S. Securities and Exchange Commission (SEC).

The 13F report is a mandatory quarterly disclosure for institutional investors managing over $100 million in assets. Notably, Goldman Sachs either reduced or entirely exited positions in several other spot Bitcoin ETFs, including ARK 21Shares' ARKB and Bitwise's BITB, aiming to consolidate its portfolio by shedding less liquid and lower-performing holdings.

Goldman Sachs is taking a multi-layered approach to its crypto investments, allocating $768 million to options on IBIT and FBTC. This strategy serves a dual purpose: hedging potential losses from spot ETFs while creating opportunities to profit from market fluctuations. The bank’s analysts have strategically positioned themselves with both put options (anticipating price drops) and call options (expecting gains).

Despite CEO David Solomon previously describing Bitcoin as speculative, Goldman Sachs has dramatically increased its Ethereum ETF holdings to $476.5 million, marking a 20-fold rise compared to the previous quarter. These investments are evenly distributed between Fidelity’s FETH ($234.7 million) and BlackRock’s ETHA ($235.5 million), signaling a deeper institutional embrace of digital assets.

Read on: Wall Street Meets Crypto: FDIC Opens the Door for Banks to Enter the Market