Goldman Sachs (GS) is making more than a cautious entry into crypto—they’re jumping in with both feet. The powerhouse investment bank has cranked up its Ether ETF investments by a staggering 2,000%, amassing a hefty $476 million worth by the end of 2024. Bitcoin hasn’t been left in the dust either; Goldman’s BTC ETF holdings have ballooned to $1.5 billion.
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Doubling Down on Digital Dough
Detailing their latest maneuvers, Goldman’s recent SEC filings reveal a hefty shift towards heavyweight crypto funds. They’ve shuffled $22 million into giants like BlackRock’s iShares Ethereum Trust (ETHA) and Fidelity’s Ethereum Fund (FETH), and didn’t shy away from plunking down an additional $6.3 million into the Grayscale Ethereum Trust ETF (ETHE). The Bitcoin side of their strategy isn’t lagging, with a hefty $1.28 billion poured into the iShares Bitcoin Trust (IBIT)—a robust 177% spike from just a quarter ago.
Goldman’s strategy is clearly adapting to a more welcoming climate for crypto. This signals they’re ready to take on bigger and riskier investments. Amid all this activity, they’ve streamlined their crypto holdings. They’re moving away from smaller ETFs to focus on the major players.
Could Crypto Be a Speculative Bubble?
Interestingly, even with some top brass at Goldman still skeptical, the firm is charging ahead. Just last spring, Sharmin Mossavar-Rahmani from Goldman’s Private Wealth Management compared the crypto craze to past frenzies like tulip mania—a historic speculative bubble in the 17th century where tulip bulb prices soared and then disastrously collapsed. Despite those reservations, here we are—Goldman is scooping up digital assets like a kid in a candy store.
As the dialogue around regulatory acceptance grows warmer and major institutions accumulate more crypto or expand their offerings of crypto ETFs, staying informed becomes crucial for investors. Investors can track their favorite cryptocurrencies on TipRanks, especially given how quickly crypto prices can shift due to macroeconomic changes. Click on the image below to find out more.
