Goldman Sachs Expands BlackRock Bitcoin ETF Stake to Over $1.4 Billion, Reinforcing Crypto Investment Strategy
Goldman Sachs has notably solidified its presence in the digital asset investment landscape by significantly expanding its holdings in BlackRock’s iShares Bitcoin Trust (IBIT), now possessing shares valued at over $1.4 billion in the prominent fund.
Significant Increase in IBIT Investment
A recent regulatory disclosure to the SEC, initially brought to public attention by MacroScope, reveals that the financial institution escalated its investment in BlackRock’s iShares Bitcoin Trust (IBIT) by a substantial 28%.
This augmentation brought its total to 30.8 million shares, appraised at more than $1.4 billion, for the quarterly period concluding on March 31.
This figure marks an increase from its previous position of 24 million shares.
Broader Context of Bitcoin ETF Holdings
This recent expansion in IBIT holdings follows a February announcement where Goldman Sachs had reported total investments exceeding $1.5 billion spread across various U.S. spot Bitcoin exchange-traded funds.
That earlier sum encompassed approximately $1.2 billion specifically in BlackRock’s IBIT and an additional $288 million invested in Fidelity’s Bitcoin fund (FBTC).
The latest regulatory submission indicates no substantial alteration to Goldman’s holdings in the FBTC fund.
Goldman Sachs Leads Institutional IBIT Holders
Based on the most current information collated by Fintel, Goldman Sachs now ranks as the leading institutional investor in IBIT.
Brevan Howard holds the second-largest position, with its investment encompassing over 25 million shares valued at close to $1.4 billion.
Other notable institutional investors with significant stakes in IBIT include Jane Street, Symmetry Investments, and D.E. Shaw & Co.
Apparent Shift in Derivatives Strategy
It’s worth noting that, as MacroScope previously pointed out, Goldman Sachs’ December filing detailed derivative positions related to Bitcoin ETFs.
These included $157 million in call options (designed to profit from a price increase) and $527 million in put options (structured to profit from a price decrease) specifically linked to IBIT.
Furthermore, the firm held $84 million in put options associated with Fidelity’s spot Bitcoin fund (FBTC).
The latest SEC submission, however, makes no mention of these options.
This absence indicates a high probability that Goldman Sachs has either divested these derivative contracts or permitted them to reach their expiration dates.
IBIT’s Dominance and Market Performance
The iShares Bitcoin Trust (IBIT) itself continues to be the dominant Bitcoin ETF in the market, with total assets under its management amounting to roughly $62.8 billion.
Since its introduction to the market in January, IBIT has successfully garnered net capital inflows exceeding $44 billion.
Farside Investors reports that approximately $674 million has flowed into the fund in the current week alone.
Mirroring this strong performance and investor interest, data from Yahoo Finance shows that the ETF’s share price increased by $1.04 during Friday’s trading activities, concluding the session at $58.66.
Also Read: Former Goldman Sachs Predicts Bitcoin Rise on Global Liquidity
