Global investment banking giant Goldman Sachs has significantly expanded its exposure to Ethereum (ETH) and Bitcoin (BTC) ETFs, signaling a continued institutional adoption of crypto assets. The bank increased its spot Ether ETF holdings by over 2,000% in Q4 2024, while doubling its Bitcoin ETF exposure to over $1.5 billion.
Key Highlights:
- Goldman Sachs increased Ethereum ETF holdings from $22 million to $476 million, a 2,000% surge in Q4 2024.
- The bank’s Bitcoin ETF investments grew 114% to $1.52 billion.
- Major allocations were made to BlackRock’s iShares Ethereum Trust (ETHA), Fidelity Ethereum Fund (FETH), and Grayscale Ethereum Trust ETF (ETHE).
- Goldman also increased its stake in BlackRock’s iShares Bitcoin Trust (IBIT) by 177%, investing nearly $1.28 billion.
- Bitcoin and Ethereum prices rose 41% and 26.3%, respectively, during the same period, boosting ETF valuations.
- Goldman exited positions in Bitcoin ETFs from Bitwise, WisdomTree, Invesco-Galaxy, and ARK-21Shares.
Goldman Sachs Bets Big on Crypto ETFs
According to its Feb. 11 Form 13F filing with the U.S. Securities and Exchange Commission (SEC), Goldman Sachs dramatically increased its crypto ETF exposure in Q4 2024. The bank’s Ethereum ETF investments surged from $22 million to $476 million, primarily through holdings in:
- BlackRock’s iShares Ethereum Trust (ETHA)
- Fidelity Ethereum Fund (FETH)
- Grayscale Ethereum Trust ETF (ETHE) – $6.3 million
Additionally, Goldman significantly boosted its Bitcoin ETF positions, doubling its exposure to $1.52 billion. The firm purchased:
- $1.28 billion worth of BlackRock’s iShares Bitcoin Trust (IBIT) – a 177% increase from Q3.
- $288 million worth of Fidelity Wise Origin Bitcoin Fund (FBTC).
- $3.6 million worth of Grayscale Bitcoin Trust (GBTC).
These moves build on Goldman Sachs’ initial foray into the spot crypto ETF market in Q2 2024 when it first disclosed a $418 million Bitcoin ETF investment.
Ethereum and Bitcoin Rally Drive Institutional Adoption
Goldman’s aggressive crypto ETF expansion coincides with a strong bullish momentum in the crypto markets. During Q4 2024, Bitcoin and Ethereum prices surged by 41% and 26.3%, respectively, according to CoinGecko data.
This suggests that rising institutional demand, coupled with increasing regulatory clarity, is fueling Wall Street’s deeper involvement in crypto investment vehicles.
Goldman Sachs Eyes Blockchain Expansion Amid Past Skepticism
Goldman’s growing crypto investments are particularly notable given the bank’s historically skeptical stance on digital assets. Since 2020, Goldman Sachs analysts have downplayed Bitcoin, stating that it “isn’t an asset class” and is “not a suitable investment” for its clients.
In April 2024, Sharmin Mossavar-Rahmani, Chief Investment Officer at Goldman Sachs Private Wealth Management, reiterated the firm’s anti-crypto sentiment, comparing Bitcoin enthusiasm to the Tulip Mania of the 1600s.
“We do not think it is an investment asset class. We’re not believers in crypto,” Mossavar-Rahmani stated.
Despite this, Goldman Sachs has increasingly integrated crypto into its institutional investment strategy, with reports in November 2024 suggesting that the firm is exploring a blockchain-based trading platform for financial instruments.
What’s Next for Institutional Crypto Investment?
Goldman’s strategic crypto ETF accumulation reflects the broader institutional shift toward regulated digital asset products. As Wall Street deepens its involvement, demand for spot Bitcoin and Ethereum ETFs is likely to rise, further strengthening crypto’s legitimacy as an institutional asset class.
With a favorable regulatory environment, continued Bitcoin ETF adoption, and rising market valuations, Goldman Sachs and other major financial institutions could further expand their crypto holdings in 2025, accelerating mainstream integration.
