Institutional investors often deploy an army of analysts and bankers, leveraging their volumes to gain a deeper understanding of the market compared to average retail investors. This is why their funds are often referred to as 'smart money'. Therefore, when the second-largest investment bank allocates billions to an asset, it typically attracts attention.
According to the latest market updates, Goldman Sachs has doubled its investments in BlackRock's iShares Bitcoin Trust (IBIT), becoming the largest institutional holder of the fund. According to an SEC report, Goldman Sachs increased its Spot Bitcoin ETF assets from 24 million to 30.8 million shares in the first quarter of 2025. In total, the total asset value is estimated at over $1.5 billion.
Thus, Goldman Sachs surpasses Brevan Howard as the largest holder. With approximately 25.5 million shares, Brevan Howard's shares are valued at around $1.2 billion, according to media reports.
The growing interest of institutional investors in digital assets like Bitcoin is confirmed by the fact that the inflow of funds into BlackRock's Bitcoin ETF has reached $44.7 billion, while the net inflow of funds into the Fidelity Wise Origin Bitcoin Fund (FBTC) amounted to $11.7 billion, according to data from Farside Investors.
In April, Goldman Sachs raised the probability of a recession in the US over the next year to 45%. After its grim forecasts, the investment bank is said to have doubled down on Bitcoin as a potential hedge against rising inflation and a possible economic slowdown.
After almost zero inclination towards cryptocurrency until 2020, a flood of institutional money accumulated by public companies like MicroStrategy and Tesla began. And now nearly all major investment banks and asset management companies have allocated investments in Bitcoin. Now, with the launch of spot Bitcoin ETFs in 2024, Bitcoin has officially entered every corner of Wall Street.
Smart money has transitioned from ignoring cryptocurrencies to mocking them, to buying the dip, and now they are making big bets.
