Goldman Sachs’ Bitcoin ETF Stake May Not Be a Sign of a Bullish Bet, Analysts Say
Bitcoin Twitter (or X) is buzzing after a 13F filing from Goldman Sachs (GS) revealed that the bank has increased its holdings in several spot Bitcoin exchange-traded funds (ETFs). However, the details behind the disclosure suggest that the move may not be as significant as some might think.
First, it’s important to note that owning these ETFs doesn’t necessarily mean Goldman Sachs is betting on Bitcoin’s price. According to analysts, these stakes are almost certainly held by the bank’s asset management division, Goldman Sachs Asset Management, for the benefit of its clients.
The 13F filing, which reflects ownership as of December 31, 2024, shows Goldman Sachs has a $288 million stake in the Fidelity Bitcoin ETF (FBTC) and a much larger $1.3 billion stake in BlackRock’s Bitcoin ETF (IBIT). However, the filing also reveals put option positions with a nominal value of over $600 million, along with a small call option position.
Put options give the holder the right to sell an asset at a predetermined price, essentially acting as a form of protection in case of a price drop, and are generally considered a bearish stance.
“This position by Goldman Sachs, like those of many other banks and hedge funds, is not a straightforward long position,” said CoinDesk Senior Analyst James Van Straten. “It’s a strategy that likely reflects the basis trade, or cash-and-carry trade, designed to balance potential gains and losses from Bitcoin price fluctuations. The ETFs recently gained approval for options trading, so this is likely a form of hedging.”
With the deadline for the fourth-quarter 13F filings quickly approaching, similar disclosures — along with potentially misleading headlines — can be expected from major wealth management firms such as JPMorgan and Morgan Stanley.
