Wall Street giant Goldman Sachs has announced that it now holds $418 million in spot Bitcoin exchange-traded funds (ETFs). This shows an increasing level of interest from institutional Bitcoin investors.
The company says it has investments across seven different Bitcoin ETFs in the United States. Goldman Sachs disclosed this in a quarterly filing. According to the filing, the company’s biggest position is the $240 million it holds in iShares Bitcoin Trust (IBIT) for BlackRock.
Bitcoin ETFs Are Seeing Increased Demand From Institutional Investors
Additionally, Goldman revealed that it holds shares of $8.3 million in Bitwise Bitcoin ETF, $56.1 million in Invesco Galaxy Bitcoin, $35.1 million in Grayscale BTC, and $79.5 million in Fidelity Bitcoin ETF. The company also has smaller Bitcoin investment funds in WisdonTree, and Ark Invest.
Goldman Sach’s revelations show an increased institutional Bitcoin product demand as the cryptocurrency continues to gain wider adoption in the mainstream. Goldman now has a diverse and broad Bitcoin ETF holding.
The company is looking to gain from the uptick in Bitcoin prices without having direct ownership of the cryptocurrency. So many companies are taking this route to gain financially from Bitcoin without having any ownership of the tokens.
Earlier this year, the head of digital assets at Goldman Sachs, Matthew McDermott, said the company’s investment in Bitcoin ETFs is an “astonishing success”.
This promises to be a game changer after years of skepticism from Wall Street. The recent actions taken by top firms are showing that the mainstream finance sector is gradually embracing the Bitcoin reality.
Bitcoin ETFs Protect Investors From High Volatility In The Market
Bitcoin ETFs have become the pathway for institutional investors to claim their stakes in the industry. ETFs provide liquidity and familiarity while helping investors take precautions from the token’s high volatility.
The demand for Bitcoin is also rising. This could lead top financial institutions to hold major Bitcoin exposure to maintain their relationship with institutional clients.
The accumulation of the Bitcoin ETF portfolio by Goldman Sachs could spur other Wall Street giants to enter the market, which is a positive growth signal for Bitcoin.
Eventually, most major financial institutions will likely hold significant Bitcoin exposure to meet client demand. Goldman’s Bitcoin ETF bet signals an understanding that Bitcoin is here to stay.
He added that the Bitcoin ETFs have been a major “psychological turning point” for the industry. McDermott says the main focus of Goldman Sach’s digital asset desk is on the digitalization of assets. He says it’s exactly what the firm is trying to do with its interests in Bitcoin ETFs.
Bitcoin ETFs have continued on a positive trajectory this week, with $4.39 million in daily inflow recorded on Tuesday.
