Goldman Sachs’ Bitcoin ETF Positions: A Hedging Play, Not a Bullish Stance
Bitcoin Twitter (or X) has been ablaze after Goldman Sachs disclosed its holdings in several spot Bitcoin exchange-traded funds (ETFs) via a 13F filing. But analysts suggest the reality behind this disclosure may not be as bullish as some might think.
The key takeaway is that Goldman Sachs’ ownership of these ETFs doesn’t necessarily reflect a direct bet on Bitcoin’s price movement. The positions are likely held by the bank’s asset management arm, Goldman Sachs Asset Management, for its clients rather than a direct wager on Bitcoin (BTC) itself.
The filing, which covers holdings as of December 31, 2024, shows that Goldman Sachs holds a $288 million stake in the Fidelity Bitcoin ETF (FBTC) and a $1.3 billion stake in BlackRock’s Bitcoin ETF (IBIT). However, the filing also reveals significant put option positions totaling over $600 million in value, along with a minor call option position.
Put options allow the holder to sell an asset at a specified price, acting as a form of insurance against a potential price decline, which reflects a more cautious, bearish outlook on Bitcoin’s price trajectory.
“Goldman Sachs’ position isn’t a net long one,” said CoinDesk Senior Analyst James Van Straten. “This is more indicative of a basis trade strategy, also known as a cash-and-carry trade, that balances potential gains and risks from Bitcoin price fluctuations. The recent approval of options trading on these ETFs suggests the bank is likely hedging its exposure.”
As the deadline for the fourth-quarter 13F filings approaches, similar filings from other major wealth management institutions like JPMorgan and Morgan Stanley are expected, potentially leading to misleading headlines and misinterpretations of the data.
