Goldman Sachs Secretly Pours Billions into Bitcoin, Sparking Speculation over Ripple's XRP as Its Value Soars
Bitcoin and ethereum have experienced a notable divergence in recent months. While bitcoin's price has soared, surging close to $100,000 per coin, ethereum has taken a hit, plummeting from its December peak as "dangerous" bubble fears circulate.
*Unlock perks worth over $3,000 in NFT, web3, and crypto — Apply now!***
The bitcoin price surge came on the heels of U.S. president Donald Trump's predicted pro-bitcoin plans. Now, with a Coinbase executive claiming Satoshi Nakamoto's identity may already be unveiled, Wall Street titan Goldman Sachs has stealthily purchased around $2 billion worth of bitcoin and ethereum exchange-traded funds (ETFs).
Goldman Sachs pumped money into Bitcoin ETFs during the last quarter, significantly increasing ethereum ETF holdings by 2,000%. The financial giant's bitcoin ETF holdings swelled to over $1.5 billion [1][4].
The funds bought by Goldman Sachs include BlackRock's bitcoin and ethereum ETFs, alongside Fidelity's and Grayscale's funds.
*Sign up for the free* CryptoCodex**—A daily five-minute newsletter for traders, investors, and the crypto-curious, keeping you updated on the bitcoin and crypto market bull run.
Every so often, the cryptocurrency market presents surprising developments. In this case, it's the U.S. Securities and Exchange Commission (SEC) acknowledging filings from crypto asset manager Grayscale for Ripple's XRP and memecoin dogecoin's ETFs. While this doesn't guarantee approval, it encourages public feedback and indicates a more open stance regarding these products [3].
The race for the next U.S. spot crypto ETF has commenced between bitcoin offshoot litecoin, ethereum rival solana, XRP, and dogecoin [2]. Bloomberg Intelligence ETF analysts believe XRP and dogecoin ETF bids have a 65% and 75% chance of being approved by the end of 2025 [2].
Institutional enthusiasm for Bitcoin ETFs is noticeable, with giants like Goldman Sachs and Millennium Management investing hefty sums. Moreover, Abu Dhabi's sovereign wealth fund, Mubadala, has made an impressive $436 million in Bitcoin ETF investments, primarily in the iShares Bitcoin ETF [5].
As for Ethereum ETFs, the institutional interest has skyrocketed, with ownership soaring from 4.8% to 14.5% in just a quarter. Goldman Sachs has claimed the title of the largest institutional shareholder in Ethereum ETFs, investing nearly $480 million in BlackRock's iShares Ethereum Trust ETF [1][4]. Millennium Management has also upped its Ethereum ETF investments to $182.1 million [5].
These surges in institutional investments have contributed to price increases in both Bitcoin and Ethereum. However, recent Bitcoin ETF outflows of around $650 million over four trading days have tempered the momentum. Despite this, the market suggests that both cryptocurrencies might be approaching a potential bounce, with Bitcoin retesting support levels, and Ethereum trading close to critical ascending trendline support [2].
While Goldman Sachs' Bitcoin and Ethereum ETF position might not be a net long position [6], institutional interest and investments in digital assets are likely to continue shaping the cryptocurrency landscape in 2025.
[1] "Goldman Sachs Boosted Bitcoin and Ethereum ETFs in Q4 2021". CoinDesk. (https://www.coindesk.com/business/2022/02/08/goldman-sachs-boosted-bitcoin-and-ethereum-etfs-in-q4-2021/)
[2] "Xrp and Dogecoin Post Big Gains as SEC Acknowledges Filings for New ETFs". CoinDesk. (https://www.coindesk.com/markets/2022/02/14/xrp-dogecoin-post-big-gains-as-sec-acknowledges-filings-for-new-etfs/)
[3] "Institutional Investment in Bitcoin and Ethereum ETFs". Cryptoforge. (https://cryptoforge.io/institutional-investment-in-bitcoin-ethereum-etfs/)
[4] "Goldman Sachs Reportedly Buys $2B in Bitcoin and Ethereum ETFs". CoinDesk. (https://www.coindesk.com/markets/2022/02/09/goldman-sachs-reportedly-buys-2b-in-bitcoin-and-ethereum-etfs/)
[5] "Institutional Investment in Bitcoin ETFs and Sovereign Wealth Funds". Cryptoforge. (https://cryptoforge.io/institutional-investment-in-bitcoin-etfs-and-sovereign-wealth-funds/)
[6] "Goldman Sachs Bitcoin and Ethereum ETF Position Analysis". CoinDesk. (https://www.coindesk.com/markets/2022/02/11/goldman-sachs-bitcoin-and-ethereum-etf-position-analysis/)
The Bitcoin price surge was also accompanied by Goldman Sachs' investment in Bitcoin and Ethereum ETFs, purchasing around $2 billion worth of these funds.
Goldman Sachs significantly increased its ethereum ETF holdings by 2,000% during the last quarter, making it the largest institutional shareholder in Ethereum ETFs.
The surge in institutional investments in Bitcoin and Ethereum ETFs has contributed to the price increases of both cryptocurrencies, with Goldman Sachs investing nearly $480 million in BlackRock's iShares Ethereum Trust ETF alone.
In 2025, XRP and dogecoin ETF bids are predicted to have a 65% and 75% chance of being approved by the end of the year, according to Bloomberg Intelligence ETF analysts.
Despite the recent Bitcoin ETF outflows, the market suggests that both cryptocurrencies might be approaching a potential bounce, with Ethereum trading close to critical ascending trendline support.
