Goldman Sachs and Bitcoin ETFs

On Wednesday, banks and hedge funds managing over $100 million in assets submitted their second-quarter 13F reports, revealing their investment activities. Morgan Stanley led the charge, allowing its 15,000 financial advisors to promote Bitcoin ETFs from BlackRock and Fidelity to clients with a net worth exceeding $1.5 million. Despite this push, Morgan Stanley reduced its stake in spot Bitcoin ETFs from approximately $270 million to $189 million, primarily holding through the iShares trust. Other financial institutions also reported their Bitcoin ETF holdings. HSBC disclosed nearly $3.6 million in spot Bitcoin assets from Ark 21Shares, while UBS and Bank of America reported holdings of around $300,000 and $5.3 million, respectively. The majority of these investments stem from client demand for exposure to Bitcoin rather than firm-led initiatives to maintain these assets on their balance sheets. Millennium Management emerged as a significant player, holding over $1.1 billion in shares across multiple Bitcoin ETFs, making it the largest shareholder in BlackRock's fund with a stake valued at over $371 million. However, this represents a significant decrease from its previous holdings of $844 million. Meanwhile, Capula Investment Management reported over $464 million in spot Bitcoin ETFs, reflecting the growing interest in this asset class. Since their inception in January, spot Bitcoin funds have attracted net inflows of approximately $17.5 billion, raising total assets to $53.5 billion by mid-August. As the cryptocurrency market evolves, firms like D1 Capital are diversifying their strategies, investing in Bitcoin mining operations to capitalize on the intersection of cryptocurrency and artificial intelligence.