Goldman Sachs Significantly Increases Its Investments in Bitcoin and Ethereum ETFs

The investment bank Goldman Sachs has significantly strengthened its presence in the crypto market in the fourth quarter of 2024, with a spectacular increase in its investments in Bitcoin and Ethereum ETFs. A surprising development for a bank that had recently expressed a critical stance on cryptocurrencies.

A massive investment in Bitcoin and Ether ETFs

In the last quarter of 2024, Goldman Sachs heavily invested in crypto ETFs. The bank increased its investments in Ethereum ETFs twenty-fold, rising from $22 million to $476 million.

Goldman Sachs primarily divides its investments between two major funds: BlackRock’s iShares Ethereum Trust and the Fidelity Ethereum Fund, with an additional investment of $6.3 million in the Grayscale Ethereum Trust, according to the Form 13F submitted to the SEC on February 11.

At the same time, Goldman Sachs more than doubled its presence in the Bitcoin ETF market, reaching a total investment of $1.52 billion. The bank notably placed $1.28 billion in the iShares Bitcoin Trust, an increase of 177% in one quarter.

Goldman Sachs also maintains a more modest position of $3.6 million in the Grayscale Bitcoin Trust.

A strategic turnaround despite historical reluctance

These massive investments come at a favorable time for cryptocurrencies: in the fourth quarter of 2024, Bitcoin rose by 41% and Ethereum by 26.3%, according to CoinGecko.

At the same time, Goldman Sachs has streamlined its portfolio by withdrawing from the Bitcoin ETFs offered by Bitwise and WisdomTree, as well as from the common products of Invesco/Galaxy and ARK/21Shares. This reorganization follows their first entry into the crypto ETF market in the second quarter of 2024, with an initial investment of $418 million in Bitcoin ETFs.

However, this investment strategy contrasts with the bank’s official stance. Since 2020, Goldman Sachs has maintained a critical position towards cryptos, considering them inappropriate for its clients.

This contradiction is particularly striking in the statements of Sharmin Mossavar-Rahmani, director of investments at Goldman Private Wealth Management, who as recently as last April compared the enthusiasm for cryptos to the 17th century tulip bubble, stating: “We do not believe in cryptocurrencies.”

Despite this cautious discourse, the bank continues its expansion in the sector. Bloomberg reported back in November that Goldman Sachs is considering launching its own platform to allow its partners to trade financial assets on the blockchain.

These significant investments by Goldman Sachs mark an important milestone in crypto adoption by Wall Street, reflecting the evolution of an increasingly favorable regulatory framework in the United States.