Goldman Sachs was skeptical of cryptocurrencies for a long time, calling Bitcoin and Ethereum “speculative assets.” But deeds speak louder than words, and the Wall Street giant has changed its mind in a big way. The investment bank, in charge of nearly $3 trillion in client assets, has invested much more money in Bitcoin and Ethereum exchange-traded funds. In just a few months, Goldman Sachs’ holdings of ETH went up by 2000%, and its shares of Bitcoin ETF went up by 114%. As regulations become clearer and more people in the U.S. support crypto, institutions are becoming more interested in digital assets. This change is in line with that trend.
Goldman’s Massive Crypto ETF Buys
The U.S. Securities and Exchange Commission (SEC) says that Goldman Sachs bought a lot of Bitcoin and Ethereum ETFs in the fourth quarter of 2024. The things bought were:
- $1.28 billion in IBIT
- The Fidelity Wise Origin Bitcoin Fund has $288 million in it.
- $3.6M Greyscale Bitcoin Trust
- The iShares Ethereum Trust and the Fidelity Ethereum Fund have raised $476 million in Ether ETFs.
Goldman bought $418 billion worth of Bitcoin funds in the second quarter of 2024, its first move into Bitcoin ETFs. The recent increase in purchases shows that institutions will likely keep investing in digital assets for a long time.
Trump’s Impact on Institutional Crypto Adoption
A big reason for Goldman’s crypto push is the election of President Trump, who favors crypto. The new government has promised to make the United States a global hub for blockchain technology by creating rules that encourage big businesses to invest in cryptocurrencies.
Rising Stablecoin Adoption and Institutional Trust
The stablecoin market is also doing very well because Goldman Sachs and other big companies are buying up Bitcoin and Ethereum. Circle’s USDC has risen from its bear market lows and now has a market cap of more than $56.1 billion, more than double its $24.1 billion low point in 2023.
Conclusion
Goldman Sachs’ sudden change of mind about crypto is a turning point for institutional acceptance. Bitcoin and Ethereum ETFs are getting a lot of money, and the demand for stablecoins is increasing. This means that the crypto market is entering a new age of legitimacy and acceptance by most people.
