Goldman Sachs' Bitcoin ETF Investments Are Rapidly Increasing

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Goldman Sachs' Bitcoin ETF Investments Are Rapidly Increasing

Goldman Sachs Group Inc (GS) is making a notable move by increasing its Bitcoin investments. The bank has expanded its position in BlackRock's iShares Bitcoin Trust (IBIT) to $461 million, representing an 83% increase over its previous position. With this move, Goldman Sachs has become the second-largest investor in IBIT, raising its holdings to 12.7 million shares.

The global investment bank is also continuing to diversify its investments in various Bitcoin ETFs. Its investment in Fidelity’s Wise Origin Bitcoin ETF has increased by 13%, reaching 1.7 million shares. Additionally, it has boosted its shares in Grayscale’s Bitcoin Trust by 116%, bringing the total to 1.42 million. The bank has also broadened its portfolio with other funds like Invesco, WisdomTree, and Ark/21Shares.

Bitcoin Price Hits Record Highs
The price of Bitcoin surged significantly following Donald Trump's victory in the U.S. presidential election. In the past 30 days, BTC has risen over 32%, reaching historic highs around $93,000 on November 13. However, it is currently trading at approximately $89,400 due to market corrections.

Substantial inflows into Bitcoin ETFs are being highlighted as one of the key factors behind this rise. In the last six days, there has been a net inflow of $4.7 billion into Bitcoin ETFs. BlackRock's iShares Bitcoin Trust has set a record with a trading volume of $5 billion. Over the last three days, IBIT saw $13 billion in trading, surpassing major stocks and ETFs.

However, on November 14, these inflows sharply reversed, resulting in a net outflow of $400.7 million. Fidelity’s Bitcoin ETF suffered the largest loss, with a withdrawal of $179.2 million, while the ARK&21Shares joint ETF lost $161.7 million. Bitwise and Grayscale products also experienced outflows of $113.9 million and $74.9 million, respectively.

Despite the overall outflow trend, IBIT recorded a net inflow of $126.5 million. VanEck's HODL ETF also saw a partial increase of about $2.5 million.