Goldman Sachs significantly deepened its involvement in the cryptocurrency space, according to the SEC File.
Thus, bank investment became the largest -owned institutional blackrock Ishhares Bitcoin Trust (IBIT) with 30.8 million shares worth more than $ 1.4 billion on March 31.
It marks a 28% increase from the previous position of 24 million shares and reflects a strong vote of confidence in the Bitcoin ETF market. By exceeding other major investors such as Brevan Howard, the Goldman Sachs has been positioned right before the exposure to institutional crypto.
Additional heavyweights such as Jane Street, De Shaw and Symmetry Investments also support Ibit, which points to increased interest from fence funds and trade companies.
Wise money goes to full risk
By the end of 2024, Goldman Sachs reported $ 2.05 billion in Crypto ETF handles, with nearly $ 1.3 billion in Blackrock's Bitcoin ETF and $ 300 million in Fidelity's. It also held nearly $ 500 million in the Ethereum ETF, evenly divided between blackrock and fidelity.
Compared to a total of $ 720 million of the previous quarter, it represents a massive 50% advances in their exposure to Crypto ETF.
The bank's aggressive accumulation of crypto assets is in line with a greater movement in the macroeconomic perspective. Recently, Goldman changed the main forecast of PCE inflation for 2024 to 3.5%, from 3.0%, expecting the Federal Reserve would respond by cutting interest rates three times in the second half of the year.
This slippery pivot can pump additional appetite to risk assets such as cryptocurrencies and crypto-related instruments.
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Meanwhile, Blackrock is constantly in contact with regulators to shape the future of digital finances. At a meeting at the SEC's Crypto Task Force on May 9, Blackrock discussed critical issues such as integrating staking into crypto ETPs and promoting tokenization of traditional security.
These developments suggest growing synergy between the traditional financial and crypto markets, indicating a broader wave of institutional adoption in reach.
