American investment bank Goldman Sachs revealed in its 13F filing that it holds significant positions in spot Bitcoin exchange-traded funds (ETFs). While this announcement has sparked excitement among Bitcoin investors, analysts emphasize that the ownership represents Goldman Sachs’ clients rather than the bank’s own position. Goldman Sachs’ Bitcoin ETF Positions According to the 13F filing submitted to the SEC by the American investment bank Goldman Sachs, which aims to provide transparency to the investment preferences of the largest institutions in the US, the bank holds $288 million worth of shares in Fidelity Bitcoin ETF (FBTC) and $1.3 billion worth of shares in BlackRock’s Bitcoin ETF (IBIT) as of December 31, 2024. However, another notable element in the disclosure is the bank’s put option positions, exceeding a nominal value of $600 million. Together with a small call option position, this indicates a different trading strategy rather than a directional Bitcoin investment. What Does Goldman Sachs’ Investment Strategy Mean? CoinDesk Senior Analyst James Van Straten points out that Goldman Sachs’ position does not necessarily imply a clear long position. “This is a strategy that reflects the base trading or cash and carry trade, aiming to balance risks against Bitcoin price fluctuations. With the approval of options for ETFs, this is likely a directional hedge,” he says. Base trading is known as a strategy that allows investors to benefit from price differences between Bitcoin ETFs and futures trading, focusing on protecting against market volatility rather than directional bets. The high put option positions seen in Goldman Sachs’ 13F filing also support this view. Put options give investors the right to sell at a predetermined price and are typically used for hedging against price drops. Misleading Headlines Proliferate in the Bitcoin Market While such news often generates excitement in the Bitcoin community, ownership of Bitcoin ETFs by investment banks is not considered a decisive development for the market on its own. Large banks like Goldman Sachs usually hold these assets on behalf of their clients. This does not imply that the bank is directly making a directional bet in the Bitcoin market. In the coming days, disclosures from JPMorgan, Morgan Stanley, and other major investment banks’ 13F filings are expected.