According to CoinDesk, major Wall Street banks, including Goldman Sachs, Morgan Stanley, and Bank of America, continued to manage bitcoin exchange-traded funds (ETFs) for their clients during the third quarter. Despite minimal changes in allocations, the fourth quarter may witness increased interest due to recent record highs in bitcoin prices.
In the third quarter, wealth management clients of these banks modestly engaged in bitcoin trading through spot bitcoin ETFs. The surge in cryptocurrency prices following the U.S. presidential election could potentially boost activity in the fourth quarter. James Van Straten, a senior analyst at CoinDesk, noted that the 13F filings reflected the subdued bitcoin price movements in Q3, with institutions being cautious in deploying capital and observing trends.
Goldman Sachs reported holding $710 million worth of spot bitcoin ETF shares by the end of September, nearly doubling from $418 million in the previous quarter. The majority of these shares were in BlackRock's iShares Bitcoin Trust (IBIT), with Goldman holding nearly 13 million shares. Other prominent banks, including Morgan Stanley, Cantor Fitzgerald, Royal Bank of Canada, Bank of America, UBS, and HSBC, made minimal changes to their positions. Australian investment bank Macquarie Group emerged as a new player, purchasing 132,355 shares of IBIT valued at $4.8 million. Wells Fargo maintained a minor stake, primarily in the Grayscale Bitcoin Trust (GBTC) and Grayscale Bitcoin Mini Trust (BTC).
These positions were disclosed in 13F filings, a quarterly requirement for institutional investors managing over $100 million in assets. The deadline for the third quarter was Thursday. BlackRock revealed a holding of 2.54 million shares, valued at $91.6 million, in its own fund as of September 30.
The period from July to September saw bitcoin prices fluctuate between $53,000 and $66,000, following a similar trend in the second quarter. This lackluster institutional interest mirrored the market's stagnant state. However, the fourth quarter has seen significant changes, with bitcoin prices surging past previous records, reaching as high as $93,400. The election of a crypto-friendly U.S. president, Donald Trump, has further fueled optimism, potentially leading to increased institutional interest and fear of missing out (FOMO) among investors.
James Van Straten anticipates that institutions may scramble to ensure at least a 1% allocation in response to the favorable political climate and bitcoin's recent performance. The upcoming 13F filings in early 2025 could reveal more dynamic shifts in institutional holdings.
Alex
Brian
Weiliang
Miyuki