A recent 13F filing by Goldman Sachs has stirred excitement on Bitcoin Twitter, revealing significant stakes in spot Bitcoin exchange-traded funds (ETFs). However, the details suggest a more nuanced reality than a straightforward bullish bet on Bitcoin’s price.
The disclosed holdings include a $288 million stake in the Fidelity Bitcoin ETF (FBTC) and a $1.3 billion position in BlackRock’s Bitcoin ETF (IBIT). Yet, these positions are almost certainly held by Goldman Sachs Asset Management on behalf of clients rather than a direct wager from the firm’s trading division.
Additionally, the filing, a snapshot of holdings as of Dec. 31, 2024, reveals the presence of put option positions with a nominal value exceeding $600 million, along with a smaller call option position. A put option grants the holder the right to sell an asset at a predetermined price, often used as a hedge against potential price declines, suggesting a more balanced approach rather than outright bullishness.
“This position by Goldman Sachs, similar to many other banks and hedge funds, is not a net long position,” said CoinDesk Senior Analyst James Van Straten. “This is a strategy that reflects the basis trade, also known as the cash and carry trade, balancing potential profits and risks for Bitcoin price fluctuations. The ETFs recently had options approved on them, so this is most likely directional hedging.”
As the deadline for fourth-quarter 13F disclosures nears, filings from other major financial institutions such as JPMorgan and Morgan Stanley are expected. These reports may bring further speculation and misleading headlines about institutional involvement in Bitcoin ETFs, reinforcing the importance of examining the context behind the numbers.