Goldman Sachs and DRW Reveal Crypto ETF Holdings

Investment bank Goldman Sachs and trading firm DRW Holdings have disclosed in their filings to the SEC the addition of cryptocurrency-related exchange-traded funds to their portfolios.

As of the end of July, the former institution held shares in spot BTC-ETFs from BlackRock, Fidelity, Grayscale, Invesco Galaxy, Bitwise, WisdomTree, and Ark 21Shares, valued at $418.7 million.

In the first instrument, the bank ranked as the third-largest holder after Millennium Management and Capula Management. The value of the organisation’s 9 million IBIT securities amounted to $238.6 million.

Meanwhile, DRW Holdings reported owning exchange-traded products based on BTC and ETH worth over $195 million, primarily invested in the Grayscale Ethereum Trust ($150 million).

Analysts at K33 noted an indirect increase in the Norwegian sovereign wealth fund’s bitcoin position during the first half of the year, from 1,508 BTC to 2,446 BTC.

The Norwegian sovereign wealth fund (NBIM) indirectly owns 2,446 BTC, an increase of 938 BTC from December 31, 2023.

The growth likely originates from pre-determined algo-based sector weighting and risk diversification. It’s unlikely to stem from an intentional choice to amass… pic.twitter.com/8HBIbemgNU

— Vetle Lunde (@VetleLunde) August 14, 2024

This was achieved by increasing the share of MicroStrategy, MARA, Coinbase, and Block stocks in the portfolio.

“The growth is likely due to a pre-determined algorithm for sector weighting and risk diversification. It is hardly related to an intentional choice to increase investments,” explained the specialists.

Previously, Morgan Stanley allowed advisors to recommend BTC-ETF to certain clients. 

By the end of the first quarter of 2024, 13 of the 25 largest hedge funds in the US held bitcoin-based products, according to River.

In May, BlackRock’s head of digital assets, Robert Mitchnick, stated expectations of a new wave of inflows into spot BTC-ETFs due to institutional participation.

In April, a similar forecast was presented by Bernstein analysts.