The investment bank Goldman Sachs has considerably strengthened its presence on the crypto market in the fourth quarter of 2024, with a spectacular increase in its investments in ETF Bitcoin and Ethereum. A surprising evolution for a bank which still recently displayed a critical position on cryptocurrencies.
A massive investment in Bitcoin and Ether
In the last quarter of 2024, Goldman Sachs invested massively in the Crypto ETF. The bank has multiplied by 20 its investments in ETF Ethereum, from $ 22 million to $ 476 million.
Goldman Sachs mainly distributes its investments between two major funds: the Ishares Ethereum Trust of Blackrock and the Fidelity Ethereum Fund, with an additional investment of $ 6.3 million in the Grayscale Ethereum Trust, according to the form 13F transmitted to the dry on February 11.
In parallel, Goldman Sachs has more than doubled his presence on the Bitcoin ETF market, reaching $ 1.52 billion in total investment. The bank notably placed $ 1.28 billion in Ishares Bitcoin Trust, an increase of 177 % in a quarter.
Goldman Sachs also retains a more modest position of $ 3.6 million in the Grayscale Bitcoin Trust.
A strategic turnaround despite the historical reluctance
These massive investments are part of a favorable period for cryptocurrencies: in the fourth quarter of 2024, Bitcoin increased by 41 % and Ethereum by 26.3 %, according to Coingecko.
At the same time, Goldman Sachs has simplified his portfolio by withdrawing from the Bitcoin ETF offered by Bitwise and Wisdomtree, as well as common products from Invesco/Galaxy and Ark/21shares. This reorganization follows their first entry into the Crypto ETF market in the second quarter of 2024, with an initial investment of $ 418 million in ETF Bitcoin.
However, this investment strategy contrasts with the official discourse of the bank. Since 2020, Goldman Sachs has maintained a critical position towards cryptos, considering them inappropriate for his customers.
This contradiction is particularly striking in the declarations of Sharmin Mossavar-Rahmani, Director of investments of Goldman Private Wealth Management, who last April still compared the enthusiasm for the cryptos at the bubble of the tulips of the 17ᵉ century, “affirming:” We do not believe in cryptocurrencies. »»
Despite this cautious speech, the bank continues its expansion in the sector. Bloomberg already reported in November that Goldman Sachs plans to launch his own platform allowing his partners to exchange financial assets on the blockchain.
These significant investments by Goldman Sachs mark an important step in Crypto adoption by Wall Street, reflecting the evolution of an increasingly favorable regulatory framework in the United States.
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