Goldman Sachs Group Inc. (GS) has expanded its cryptocurrency ETF strategy with direct holdings in spot bitcoin and Ethereum funds and options positions, underscoring its growing embrace of digital asset-focused investments.
Goldman increased its total crypto ETF holdings to $2.05 billion in the fourth quarter of 2024, up from the $744 million it held in the third quarter, according to the bank’s latest 13F filing with the Securities and Exchange Commission. The bank’s bitcoin ETF holdings reached nearly $1.6 billion, with its largest position in BlackRock’s iShares Bitcoin Trust (IBIT) at $1.2 billion.
The investment bank’s new options strategy includes $527 million in put positions and $157 million in call options on IBIT, according to the filing. An additional $84 million put position was established in the Fidelity Wise Origin Bitcoin Fund (FBTC).
The filing reflects the investment banking giant's reversal of its prior skepticism about crypto. As recently as last year, the chief investment officer of the bank's Wealth Management division told The Wall Street Journal that the bank did not "think it is an investment class."
Goldman's options strategy also suggests that the firm is looking to address crypto's volatility by providing downside protection if crypto markets falter without relinquishing the potential for gains.
Goldman also dramatically increased its Ethereum ETF exposure from $25 million in the third quarter to $476.5 million in the fourth quarter, according to the SEC filing. This was split between multiple funds, including around $235 million in both the iShares Ethereum Trust (ETHA) and Fidelity Ethereum Fund (FETH) and $6.2 million in the Grayscale Ethereum Mini Trust (ETH).
While building these direct positions, Goldman closed out several smaller ETF holdings from the previous quarter, including positions in the ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB) and the WisdomTree Bitcoin Fund (BTCW), the filing shows.
The data reveals Goldman maintains a $3.6 million position in the Grayscale Bitcoin Trust ETF (GBTC), down from the $71.8 million in the previous quarter, according to the SEC documents.
With 44 ETFs traded on the US markets, Goldman Sachs ETFs have total assets under management of $36.3 billion, according to etf.com data. The firm’s largest fund is the $13.5 billion TR Activebeta US Large Cap Equity ETF (GSLC).
Bitcoin, the largest cryptocurrency by market capitalization, has been trading at about $98,000, well off its all-time high of about $109,000, set last month. Ether, the token of the Ethereum blockchain and second-largest digital asset, has been changing hands at about $2,700.
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