Goldman Sachs Significantly Bolsters Investment in BlackRock’s Bitcoin ETF Elevating Stake to $1.4 Billion

Summary

• Goldman Sachs has significantly increased its investment in BlackRock’s iShares Bitcoin Trust (IBIT), expanding its stake by 28% to 30.8 million shares, valued at over $1.4 billion as of March 31st.

• This enlarged holding positions Goldman Sachs as the largest institutional investor in IBIT, surpassing other major stakeholders like Brevan Howard, while its investment in Fidelity’s Bitcoin fund (FBTC) remained largely unchanged.

• A notable strategic shift is indicated by the absence of previously reported call and put options on Bitcoin ETFs in Goldman Sachs’ latest filing, suggesting these derivative positions have been closed or allowed to expire.

• BlackRock’s IBIT maintains its status as the leading Bitcoin ETF, managing approximately $62.8 billion in assets, and has consistently attracted substantial net inflows, exceeding $44 billion since its launch in January.

Goldman Sachs has markedly increased its exposure to cryptocurrency through a substantial augmentation of its investment in BlackRock’s iShares Bitcoin Trust (IBIT), positioning the financial giant as a key institutional participant in this burgeoning asset class.

Substantial Growth in IBIT Holdings Disclosed

Recent regulatory disclosures reveal a significant 28% expansion in Goldman Sachs’ holdings within BlackRock’s iShares Bitcoin Trust (IBIT).

The investment bank now possesses 30.8 million shares, carrying an estimated worth exceeding $1.4 billion, for the quarterly period concluding on March 31st.

This represents a considerable increase from its previously held 24 million shares, according to details from a new SEC filing first highlighted by MacroScope.

Context of Broader Bitcoin ETF Investments

This amplified investment builds upon Goldman Sachs’ February disclosure, where the firm revealed aggregate holdings surpassing $1.5 billion across various U.S. spot Bitcoin exchange-traded funds (ETFs).

This earlier figure included approximately $1.2 billion allocated to BlackRock’s IBIT and around $288 million invested in Fidelity’s Bitcoin fund (FBTC).

The most recent regulatory submission indicates that Goldman’s position in FBTC has not undergone any notable alterations.

Goldman Sachs Emerges as Top IBIT Institutional Holder

Current data compiled by Fintel positions the investment banking titan as the principal institutional investor in IBIT.

Following closely behind is Brevan Howard, with holdings that exceed 25 million shares, valued at nearly $1.4 billion.

Other prominent entities with significant stakes in IBIT comprise Jane Street, Symmetry Investments, and D.E. Shaw & Co.

Shift in Options Strategy Apparent

It is noteworthy that Goldman Sachs’ December disclosure detailed various options positions tied to Bitcoin ETFs.

As MacroScope pointed out, these included $157 million in call options (which generally profit from an upward price movement) and $527 million in put options (which typically benefit from a downward price movement) for IBIT.

Additionally, the firm held $84 million in put options for Fidelity’s spot Bitcoin fund (FBTC).

These options contracts are conspicuously absent from the latest filing, suggesting that Goldman Sachs has likely liquidated these positions or allowed them to expire.

IBIT’s Leading Market Position and Performance

The iShares Bitcoin Trust (IBIT) continues its reign as the foremost Bitcoin exchange-traded fund, currently overseeing approximately $62.8 billion in assets.

Since its inception in January, the fund has successfully attracted net inflows exceeding $44 billion.

This week alone, IBIT has recorded inflows of approximately $674 million, according to data from Farside Investors.

Reflecting positive market sentiment, shares of the ETF experienced a $1.04 increase during Friday’s trading session, closing at $58.66, as per Yahoo Finance data.

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