Goldman Sachs and DRW Capital have disclosed substantial investments totaling over $600 million in spot Bitcoin and Ethereum exchange-traded funds (ETFs). These figures, revealed through recent 13F filings with the US Securities and Exchange Commission (SEC), underscore the increasing institutional interest in digital assets.
Institutional Giants Push Bitcoin ETF Growth, Indicating Long-Term Confidence
Goldman Sachs has reported holdings in seven out of the eleven available Bitcoin ETFs in the US, amassing nearly $410 million. The bank’s largest investment is in the iShares Bitcoin Trust (IBIT), valued at $238.6 million. Other significant positions include $79.5 million in Fidelity’s Bitcoin ETF (FBTC) and $56.1 million in Invesco Galaxy’s BTC ETF (BTCO). Goldman Sachs also has smaller investments in the Bitwise Bitcoin ETF (BITB), WisdomTree Bitcoin Fund (BTCW), and Ark 21Shares Bitcoin ETF (ARKB).
In a similar vein, DRW Capital has disclosed investments exceeding $195 million in crypto ETFs. Over $150 million of this is allocated to the Grayscale Ethereum Trust. The firm has also spread its Bitcoin ETF investments across products from Ark, 21Shares, Bitwise, BlackRock, Fidelity, and ProShares.
Despite these significant investments, the short-term performance of spot Bitcoin ETFs has been relatively muted. Data from SoSo Value reveals a total inflow of $66.8 million into spot Bitcoin ETFs over the last two trading days. The iShares Bitcoin Trust (IBIT) led with an inflow of $48 million, followed by the ARKB with $29.3 million. Conversely, the Grayscale Bitcoin Trust (GBTC) experienced an outflow of $40.4 million during the same period.
The heightened interest from institutional investors like Goldman Sachs and DRW Capital is viewed as a positive indicator for the crypto market. Juan Leon, a senior investment strategist at Bitwise, highlighted the potential impact of these investments on Bitcoin’s market dynamics“Since January, inflows into Bitcoin ETFs have topped $17 billion, pushing Bitcoin to an all-time high earlier this year. These inflows don’t even include some of the biggest players. Last week, Morgan Stanley became the first wirehouse to approve Bitcoin ETFs on their platform. We expect Merrill Lynch, UBS, Wells Fargo, and others to follow suit,” Leon remarked.
