Once a bit iffy about crypto, Wall Street heavyweight Goldman Sachs has made headlines by diving deep into the Bitcoin pool, revealing a whopping $710 million stash. This unexpected move signals a major shift in the firm's attitude towards cryptocurrency and could be a game-changer in how traditional finance views digital assets.
Back in August, Goldman wasn't quite as bullish, holding a modest $252 million in BlackRock's IBIT fund and $33.2 million in Grayscale's GBTC. Fast forward to November, and things have taken a dramatic turn. They've cranked up their stake in IBIT by a staggering 83% to $461 million and doubled down on GBTC, boosting it by 116% to $71.8 million.
But wait, there's more! They've also thrown $95.5 million into the Fidelity Wise Origin Bitcoin Fund (FBTC), marking a 13% uptick, and pumped up their investment in Bitwise's BITB by 156% to $22.5 million. Goldman kept its 940,443 shares in BTCO, a joint project with Galaxy Digital and Invesco, steady at $59.7 million. All this adds up to a grand total of about $710 million in crypto holdings.
This crypto revelation comes as the U.S. regulatory environment is becoming more crypto-friendly, especially with Donald Trump back in the White House and a Congress filled with over 260 crypto-supporting lawmakers. With exchange-traded funds (ETFs) making it easier for big players to dip their toes into the crypto waters, analysts predict this could lead to more widespread adoption.
Goldman's recent filing marks a huge departure from their earlier skepticism. Not too long ago, some of their top brass weren't exactly crypto cheerleaders. In April, Sharmin Mossavar-Rahmani, their Chief Investment Officer for Wealth Management, dismissed Bitcoin as too volatile for long-term investment. But the winds of change are blowing, with CEO David Solomon now acknowledging Bitcoin's potential as a store of value.
And it's not just Goldman making waves. The traditionally cautious Teachers Insurance and Annuity Association of America (TIAA) has also dipped a toe in, revealing a $51,921 position in FBTC. While small, it's a clear sign that even the most conservative players are warming up to the idea of Bitcoin, showing just how far the crypto revolution has come.
