Update as of 02/14 below. This article was first published on February 13.
Recently, Bitcoin and Ethereum have followed different trajectories, with Bitcoin’s price surging while Ethereum grapples with challenges—partially influenced by predictions regarding U.S. president Donald Trump’s stance on Bitcoin.
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The price of Bitcoin is currently just below $100,000, having nearly reached $110,000 in mid-January, whereas Ethereum has seen a steep decline from its December high amid fears of a “dangerous” bubble forming.
In a curious twist, as a Coinbase executive suggests that Satoshi Nakamoto’s identity might be known, Wall Street behemoth Goldman Sachs has reportedly acquired around $2 billion worth of Bitcoin and Ethereum exchange-traded funds (ETFs).
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Goldman Sachs acquired $1.5 billion in Bitcoin and Ethereum ETFs as Bitcoin prices have surged.… [+]
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Goldman Sachs significantly increased its Bitcoin and Ethereum ETF holdings in the fourth quarter, raising its Ethereum ETF stake by an astonishing 2,000% and boosting its Bitcoin ETF investment to over $1.5 billion, as per a regulatory filing.
The ETFs purchased by Goldman Sachs included those managed by BlackRock, Fidelity, and Grayscale.
Update as of 02/14: Cryptocurrency prices have experienced gains over the past 24 hours, with minor increases for Bitcoin and Ethereum overshadowed by a 10% rise in Ripple’s XRP, following the U.S. Securities and Exchange Commission (SEC) recognizing filings from Grayscale to list spot XRP and dogecoin ETFs.
“While this doesn’t guarantee approval, it initiates the process for public feedback,” analysts from Tagus Capital commented in an email.
“Grayscale’s XRP ETF, submitted in January and revised in February, is currently under review, with a potential 240-day approval timeline. The SEC’s acknowledgment marks a shift towards a more favorable view of these products.”
The competition for the next U.S. spot crypto ETF is heating up among Bitcoin derivative Litecoin, Ethereum competitor Solana, XRP, and dogecoin, with Bloomberg Intelligence ETF analysts James Seyffart and Eric Balchunas estimating earlier this month that XRP and dogecoin ETF applications have a 65% and 75% chance of being approved by the end of 2025.
BlackRock has spearheaded efforts to obtain approval for a spot Bitcoin ETF in the U.S. throughout 2023, with a series of Bitcoin funds launching in January 2024, experiencing exponential growth.
U.S. spot Bitcoin ETFs reached over $100 billion in net assets for the first time in November, led by BlackRock’s iShares Bitcoin Trust (IBIT), which currently manages just above $60 billion.
Despite this, the significance of Goldman’s investment in Bitcoin and Ethereum through ETFs has been downplayed by some analysts.
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The price of Bitcoin has skyrocketed over the past year, buoyed by Wall Street’s increasing acceptance and Donald Trump’s support for Bitcoin, Ethereum, and cryptocurrency.… [+]
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“Goldman Sachs’s current position, akin to many other financial institutions, does not signify a net long stance,” stated Coindesk senior analyst James Van Straten.
“This strategy aligns with the basis trade, also referred to as the cash and carry trade, aiming to balance potential profit and risks related to Bitcoin price movements. The recently approved options on ETFs indicate this is likely a form of directional hedging.”
Recently, BlackRock CEO Larry Fink disclosed that he has engaged with sovereign wealth funds about investing in Bitcoin, suggesting this could potentially send Bitcoin prices soaring to $700,000 each.
“If this conversation were to gain traction, prices could rise to $500,000, $600,000, or even $700,000 per Bitcoin,” Fink, who spearheaded the Wall Street’s interest in Bitcoin and cryptocurrency last year through a range of spot Bitcoin ETFs, told Bloomberg during the World Economic Forum in Davos.
