Bitcoin price rises as Goldman Sachs doubles its investment in bitcoin-ETFs
Goldman Sachs boosts Bitcoin and Ethereum ETF stakes
Goldman Sachs, once dismissive of Bitcoin, has revealed its significant investment in the flagship cryptocurrency. The investment bank recently disclosed $718 million in holdings across eight Bitcoin ETFs, including a $461 million stake in BlackRock’s iShares Bitcoin Trust ETF (IBIT). This marks a 71% increase in their Bitcoin ETF investments since Q2, with an additional $300 million poured into their portfolio. The move reflects a significant pivot from their 2020 stance when they labeled cryptocurrencies “not a suitable investment.”
The bank’s growing involvement comes as Bitcoin ETFs gain traction globally. DigitalX, an Australian fund manager, recently reported a 99% annual profit for its Bitcoin Fund and a long-term growth rate of 526% over five years.
Bitcoin funds faces setback but appreciates further
However, it’s not all smooth sailing. DigitalX noted a 2.1% dip last quarter, showing the volatile nature of the sector. Furthermore, some ETFs also saw notable outflows ahead of the U.S. presidential election. For instance, BlackRock’s IBIT faced withdrawals totaling $541.1 million on November 4, marking the largest outflow since May.
Still, the flagship cryptocurrency’s resilience from $1 to $90k reinforces its credibility in which this year alone, it has gained over 109% in value.
Beyond Bitcoin, Goldman Sachs has diversified into Ethereum ETFs, with $22.6 million in the Grayscale Ethereum Mini Trust ETF and $2.6 million in Fidelity’s Ethereum Fund. These moves signify a broader institutional embrace of cryptocurrencies, signaling a shift in how traditional finance views the sector.
Bitcoin hits $90K with steady gains amid record $2.2B inflows. Since the U.S. election on November 5, the flagship cryptocurrency has soared 30%.
