Goldman Sachs And Hedge Funds Dive Into Bitcoin ETFs
This move follows January's approval of bitcoin ETFs, which has led to a gradual influx of funds into the crypto market.
Goldman Sachs has entered the spot bitcoin ETF market with a significant $418 million investment in the second quarter, marking its debut in the sector. According to CNBC news, the bank's holdings include a $238 million stake in BlackRock’s iShares Bitcoin Trust and shares in other major Bitcoin funds from Grayscale, Invesco, and Fidelity.
In contrast, Morgan Stanley has reduced its exposure to bitcoin ETFs, trimming its holdings from about $270 million to $189 million, largely by selling off shares in the Grayscale Bitcoin Trust due to its high management fees. On the other hand, JPMorgan has yet to make a substantial investment in the space, with minimal holdings in bitcoin ETFs.
As the Securities and Exchange Commission (SEC) has opened the door for spot ether ETFs, new investments in these funds will be reflected in third-quarter reports. This move follows January's approval of bitcoin ETFs, which has led to a gradual influx of funds into the crypto market.
Hedge funds have been more aggressive in their crypto investments. Millennium Management now holds over $1.1 billion in various Bitcoin ETFs, with a substantial stake in BlackRock’s fund. Capula Investment Management and other firms like Point72 and Apollo Management have also significantly increased their positions in bitcoin ETFs.
The spot bitcoin ETF market has seen net inflows of around $17.5 billion since its launch in January, bringing total assets to $53.5 billion. Despite recent volatility, bitcoin prices remain up over 30% for the year.
