Wall Street’s growing appetite for Bitcoin ETFs was back in focus Tuesday after an SEC filing showed Goldman Sachs holds more than $1 billion in the cryptocurrency through spot Bitcoin funds, including BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) and Fidelity’s Wise Origin Bitcoin Fund (BATS:FBTC).
The move highlights how big institutions increasingly favor regulated ETF products to holding crypto assets directly, despite the fact that the price of Bitcoin is volatile and investor sentiment is unstable.
Institutional Access Without Direct Crypto Risk
Goldman’s move is consistent with institutional investors’ general preferences about liquidity and regulatory clarity.
Spot bitcoin ETFs involve the holding of actual bitcoin and the tracking of the price thereof, offering exposure without the operational complexities of crypto wallets or private keys. This structure has helped traditional finance firms cautiously enter digital assets.
The timing is interesting as the price of bitcoin has plummeted from its highs, and billions have left spot bitcoin ETFs in the past few months following a volatile crypto market.
IBIT Vs FBTC: Two Titans, Different Strengths
While both ETFs provide direct Bitcoin exposure, their positioning and scale differ.
BlackRock’s IBIT
- Expense ratio: 0.25%
- Assets: Among the largest Bitcoin ETFs, with more than $52 in AUM and solid growth since early 2024 launch
- Holdings: Primarily Bitcoin with small cash balances
- Competitive edge: Liquidity, institutional distribution, and brand dominance
IBIT has emerged as the institutional benchmark ETF, often leading trading volumes during market stress.
Fidelity’s FBTC
- Expense ratio: 0.25%
- Assets: Roughly $16 billion
- Holdings: Essentially 100% Bitcoin, tracked via Fidelity’s benchmark rate
- Key edge: Integrated brokerage ecosystem and in-house digital asset custody
FBTC is often prefered by investors already onboard Fidelity’s brokerage platform.
Both funds launched in early 2024 following regulatory approval of spot Bitcoin ETFs and have since become primary vehicles for mainstream crypto exposure.
Beyond Bitcoin: A Broader Crypto ETF Push
Goldman’s filing also revealed its exposures to Ethereum, XRP, and Solana, thus implying the expansion of crypto adoption, not just on Bitcoin.
This trend could drive accelerated innovation in ETFs, including multi-asset crypto funds and expanded digital-asset strategies.
What Comes Next
Despite price volatility, institutional allocations suggest Bitcoin ETFs are increasingly viewed as a permanent portfolio component rather than a speculative experiment.
The competitive play between the scale of IBIT and platform integration of FBTC may shape future flows, especially if fee wars intensify or crypto markets stabilize.
For the time being, even as Bitcoin wobbles, Wall Street’s doorway into cryptocurrencies via ETFs stays wide open.
Image: Shutterstock
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