Goldman Sachs and Morgan Stanley Join Bitcoin ETF Market

On August 14, it was reported by Reuters that investment giants $Goldman Sachs (GS.US)$ and $Morgan Stanley (MS.US)$ had collectively bought over $600 million worth of spot $Bitcoin (BTC.CC)$ exchange-traded funds (ETFs) in the second quarter, according to regulatory filings released on Wednesday. These two prominent banks are now part of a growing group of hedge funds and financial advisors investing in these products since their inception in January 2024.

Goldman Sachs disclosed to the SEC in a 13-F filing that it acquired approximately $418 million in various new ETFs linked to the spot price of Bitcoin. A significant portion of this investment was in the $iShares Bitcoin Trust (IBIT.US)$, which amounted to nearly 7 million shares valued at approximately $238 million as of June 30. The bank also invested in the Fidelity Wise Origin Bitcoin ETF and the $Invesco Galaxy Bitcoin ETF (BTCO.US)$, among others.

Likewise, Morgan Stanley showed a preference for $Blackrock (BLK.US)$ 's iShares Bitcoin ETF, with a disclosed investment in 5.5 million shares worth $188 million. The bank also held smaller amounts in the $ARK 21Shares Bitcoin ETF (ARKB.US)$ and $Grayscale Bitcoin Trust (GBTC.US)$.

Hedge Funds Adjust Bitcoin ETF Positions

Some hedge funds have adjusted their Bitcoin ETF positions throughout the second quarter. Hunting Hill Global Capital, based in New York, reduced its positions in the Grayscale and Fidelity ETFs but held a $18.32 million stake in the $Bitwise Bitcoin ETF (BITB.US)$ and took a new $25.6 million position in BlackRock's ETF as of June 30.

Adam Guren, CEO of Hunting Hill, stated that his firm actively trades Bitcoin products and that their positions can vary over time. Millennium Management LLC reported cutting stakes in three out of five Bitcoin ETFs it had invested in the first quarter, keeping its investment in the Ark 21Shares ETF stable and increasing its Bitwise ETF holdings. At the quarter's end, the hedge fund had around $1.15 billion in Bitcoin ETFs, a decrease from the $2 billion reported at the end of the first quarter.

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