Goldman Sachs has revealed a significant increase in its Bitcoin ETF holding. In a recent filing with the U.S. Securities and Exchange Commission (SEC), the bank had $710 million in Bitcoin ETFs as of September 30.
The increase comes at a time when Bitcoin ETFs have seen an increase in value and traction. The increase also highlights Goldman Sachs’ growing interest in Bitcoin assets.
Bitcoin ETFs See Rise in Trading
In the previous six trading days, US spot-listed ETFs have seen net inflows of nearly $4.7 billion, as Bitcoin’s dominance continues to rise to all-time highs, most recently 61.38%.
One of the largest funds in an antiquated investment category—gold—has already been overtaken by the quickly expanding iShares Bitcoin Trust (IBIT).
As of Friday, the Bitcoin exchange-traded fund’s AUM was approximately $34.3 billion. It surpasses the iShares Gold Trust (IAU), which had little less than $33 billion.
The most recent cryptocurrency rally, which saw bitcoin soar above $89,000 over the weekend, has made many keen to invest in crypto.
Why Are Bitcoin ETFs Seeing Rise in Demand?
The Securities and Exchange Commission’s (SEC) decision to give a green signal to the Bitcoin ETFs gave investors a means to indirectly invest in crypto assets. This has helped many to stay aside from the volatility and technicality of investing in crypto directly but still have digital assets under their belt.
ETF investments on Bitcoin help institutional investors manage the volatility element while also providing them with the opportunity to make significant gains in the interim.
At present, Bitcoin has performed better than the world’s biggest financial assets. Recently, Bitcoin overtook Saudi Aramco as the world’s seventh-largest asset.
In addition, cryptocurrency investors are celebrating the possibility of a power shift at the SEC. Many in the sector anticipated that a pro-crypto candidate would be the next SEC chair when rumors circulated that Genser would be leaving tomorrow.
A broader trend of traditional financial institutions becoming more interested in cryptocurrencies is reflected in the increase in Bitcoin ETF holdings.
Additionally, the results of the US 2024 elections have kept the overall market afloat. Cryptocurrency investors think that Trump will expand market adoption and stop the Securities and Exchange Commission from stepping up its monitoring of the industry.
It was clear that Trump and his sons supported the growth of the cryptocurrency industry when they unveiled World Liberty Financial, a new company, in September.