Goldman Sachs and Morgan Stanley Increase Bitcoin ETF Holdings: Institutional Interest Is Growing
Date: 2024-08-16 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Wall Street investment advisers, including giants Goldman Sachs and Morgan Stanley, became the largest holders of spot bitcoin ETFs by the end of Q2 2024, signaling growing institutional investor interest in cryptocurrencies.
According to a filing with the U.S. Securities and Exchange Commission, Goldman Sachs held $418 million worth of bitcoin on behalf of its clients as of June 30, 2024. This is notable given that the bank’s chief investment officer for asset management told the Wall Street Journal in April that there was little client interest in the asset class.
Morgan Stanley, which recently allowed its brokers to offer Bitcoin ETFs to clients, held $188 million in spot funds at the end of June, down $87 million from three months earlier.
Both firms chose to invest in BlackRock’s iShares Bitcoin Trust, which is currently the largest spot ETF on the market. The portfolio also included ETFs from other asset managers, such as Fidelity’s Wise Origin Bitcoin ETF (FBTC) and Invesco Galaxy Bitcoin ETF (BTCO), indicating the diversification of their crypto investments.
The growth in spot Bitcoin ETF holdings among major investment banks points to a growing trend of institutional adoption of Bitcoin as an asset. While the total amount allocated to the cryptocurrency remains modest, such moves by Goldman Sachs and Morgan Stanley could signal the beginning of a broader institutional adoption of digital assets.
As the crypto industry continues to grow and the number of regulated investment products increases, we can expect further growth in interest from major financial institutions. With the active participation of players like Goldman Sachs and Morgan Stanley, Bitcoin continues to gain ground as an important element of investment portfolios for various categories of investors.
