Goldman Sachs (GS) and Morgan Stanley (MS), two of the biggest names on Wall Street, have quietly made a significant move into the world of Bitcoin. According to recent filings, these financial giants have collectively invested over $600 million in various spot Bitcoin exchange-traded funds (ETFs) during the second quarter of 2024. This news highlights a growing interest from institutional investors in the cryptocurrency space, a market once dominated by individual traders.
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Goldman Sachs Bets Big on Bitcoin ETFs
Goldman Sachs led the charge, revealing in its quarterly 13-F filing with the Securities and Exchange Commission (SEC) that it had acquired about $418 million worth of Bitcoin ETFs. The bulk of this investment went into the iShares Bitcoin Trust (IBIT), with Goldman snagging nearly 7 million shares, valued at around $238 million by the end of June. Alongside this, the bank also took positions in other prominent ETFs like the Fidelity Wise Origin Bitcoin ETF (FBTC) and the Invesco Galaxy Bitcoin ETF (BTCO).
Morgan Stanley’s Follows Suit
Not far behind, Morgan Stanley disclosed a $188 million stake in the iShares Bitcoin ETF, purchasing 5.5 million shares. Additionally, the bank diversified its Bitcoin portfolio with smaller holdings in the Ark 21Shares Bitcoin ETF (ARKB) and the Grayscale Bitcoin Trust (GBTC).
Hedge Funds Adjust Their Bitcoin Stakes
While Goldman and Morgan Stanley’s moves are eye-catching, they’re not alone. According to Reuters, Hedge funds like Hunting Hill Global Capital and Millennium Management have also been active in the Bitcoin ETF market, although their strategies have varied. For instance, Hunting Hill trimmed its exposure to certain ETFs but still held significant positions, including a $25.6 million stake in BlackRock’s Bitcoin ETF.
Future of Bitcoin ETFs in Traditional Finance
While the products have largely been dominated by individual investors, the entrance of big players like Goldman Sachs and Morgan Stanley could signal a shift in market dynamics. However, with Bitcoin’s price dropping 12% during the quarter, it’s clear that the path ahead remains uncertain. Whether these banks are betting for themselves or on behalf of clients, their big stakes in Bitcoin ETFs showcase the growing acceptance of cryptocurrency in traditional finance circles.
At the time of writing, Bitcoin is sitting at $58,428.79.
Which Is the Best Bitcoin ETF to Buy?
Investors can use TipRanks’ Compare ETF tool to find the Bitcoin ETF that aligns best with their investment goals.
