In the fourth quarter of 2024, Goldman Sachs attracted attention by significantly increasing its investment in Bitcoin and Ethereum-related ETFs, showing the growing interest of traditional financial institutions in the cryptocurrency market. This move not only reflects the new investment strategy of the largest bank on Wall Street but also brings positive signals for the entire crypto market.

Strengthening Investment in Bitcoin ETF

According to the latest report submitted to the U.S. Securities and Exchange Commission (SEC), Goldman Sachs has raised its total holdings in Bitcoin ETFs to $1.57 billion, an increase of 121% compared to the previous quarter. Among them, the most notable is the investment in BlackRock's iShares Bitcoin Trust (#IBIT ) with a value of $1.27 billion, up more than 88% compared to the previous report.

Additionally, the bank has added $288 million to Fidelity's Wise Origin Bitcoin ETF (#FBTC ), marking a 105% growth compared to the previous quarter. In total, Goldman Sachs currently holds over $2.05 billion in Bitcoin-related ETFs, showing strong confidence in the growth potential of the world's largest digital currency.

Expanding Investment into Ethereum ETF

Not only focusing on Bitcoin, Goldman Sachs is also boosting investments in Ethereum – the second largest cryptocurrency in the world. By the end of 2024, the bank had increased its holdings to $476.5 million, nearly 19 times compared to the previous quarter.

Specifically, Goldman Sachs has invested $234.7 million in Fidelity's FETH fund and $235.5 million in BlackRock's ETHA fund. This shows that the bank is diversifying its cryptocurrency investment portfolio and believes in the potential of Ethereum, despite the recent decline in value compared to Bitcoin.

Positive Signals for the Cryptocurrency Market

The #GoldManSachs strengthening of investments in Bitcoin and Ethereum-related ETFs not only reflects a change in the bank's investment strategy but also brings many positive signals for the cryptocurrency market:

  • Increasing investor confidence: The move from a major financial institution like Goldman Sachs helps to reinforce investor confidence in the long-term growth potential of Bitcoin and Ethereum.

  • Boosting institutional cash flow: The strong participation of Goldman Sachs could create a ripple effect, encouraging many other financial institutions to also start considering investments in cryptocurrency.

  • Stabilizing and developing the market: With the increase in large investments, the cryptocurrency market is likely to develop more stably and continue to expand.

The Appeal of Crypto at Present

Goldman Sachs' push to invest in Bitcoin and Ethereum comes in the context where both currencies have recorded strong growth in Q4 2024. Bitcoin increased by 40.6%, while Ethereum also saw an increase of 26.2%. Notably, Bitcoin reached a record price of $109,000 just before the inauguration of U.S. President Donald Trump.

The strong recovery of Bitcoin is partly driven by increasing interest from institutional investors and favorable legal conditions following Donald Trump's re-election.

Conclusion

The move to increase investments in Bitcoin ETF and Ethereum ETF by Goldman Sachs not only indicates a change in investment strategy from one of the largest banks in the world but also reflects strong confidence in the future of cryptocurrency.

This could create a positive ripple effect, promoting the development of the crypto market in the near future. If this trend continues, not only Bitcoin and Ethereum but the entire cryptocurrency ecosystem could witness a stronger explosion than ever.

Risk Warning

The cryptocurrency market always carries high risks and is not suitable for all investors. The value of Bitcoin, Ethereum, and other digital assets can fluctuate dramatically in a short time. Investors should consider carefully and only use capital they can afford to lose completely before participating.

Note: This article is for informational purposes only and is not investment advice.