Goldman Sachs spent a staggering $1.4 billion to position itself in the Bitcoin market through BlackRock’s iShares BTC Trust Fund (IBIT), and this move instantly became the focus of the market. Currently, Goldman Sachs holds 30.8 million shares of IBIT, making it the largest institutional holder of the fund, and its holdings have increased by 28% compared to the beginning of the first quarter of 2025. Meanwhile, Goldman Sachs also holds 3.5 million shares of Fidelity’s Wise Origin BTC ETF (FBTC), worth approximately 314 million US dollars. This holding situation was disclosed as early as February this year.
As the largest spot BTC ETF at present, IBIT has performed exceptionally well recently. Over the past 20 trading days, it has continuously received net inflows of funds, cumulatively absorbing approximately 5 billion US dollars, setting a record for the longest consecutive inflow of funds in the spot BTC ETF market in 2025. The inflow of funds far exceeds that of other BTC ETFs. Eric Balchunas, a senior ETF analyst at Bloomberg, wrote on the X platform that the inflow of funds to $IBIT was significantly higher than that of other ETFs. This difference might stem from the return of high-frequency trading basis arbitrage strategies and the entry and layout of large funds after the BTC price decoupled from assets such as gold and rebounded.
The timing of Goldman Sachs ‘significant increase in holdings of BTC ETFs is also very delicate, at a time when the price of BTC is soaring. Recently, Bitcoin, the flagship Crypto asset, has once again broken through the $100,000 mark. As of the time of this article’s publication, the trading price of BTC is $104,310, just one step away from the historical high of $108,786 set on January 20th. This move by Goldman Sachs not only demonstrates its strong confidence in the future value of Bitcoin, but also reflects from the side the positive impact of the current market environment on the investment in crypto assets.
From a macro perspective, the regulatory environment under President Trump’s administration has become increasingly relaxed, creating favorable conditions for Wall Street institutions to accelerate their layout in the Crypto asset market. Previously, Trump announced that digital assets such as Bitcoin would be included in the new US cryptocurrency strategic reserve and also presided over the White House Cryptocurrency Summit, clearly expressing his support for the development of the cryptocurrency and digital asset market. These measures undoubtedly injected strong policy benefits into the cryptocurrency market, enhanced the confidence of market participants, and attracted more traditional financial giants like Goldman Sachs to get involved.
U.S. Treasury Secretary Scott Bessent said at a hearing on the global financial system held by the House Financial Services Committee that in the coming years, the demand for U.S. government bonds in the digital asset sector may surge, and the potential scale could reach 2 trillion U.S. dollars. He emphasized the increasing financial importance of digital assets to the broader economy and pointed out that the United States must play a leading role in setting global standards for the Crypto asset market, and the United States has the opportunity to benefit from guiding innovation. Bessent gave an example, saying that the integration of stablecoins and other blockchain-based financial products with the US dollar and the US Treasury bond market is deepening, indicating that digital assets can support the national financial interests of the United States.
It is expected that the majority of this demand will come from stablecoins. As of the end of March, Tether, the world’s largest stablecoin issuer, held nearly 120 billion US dollars worth of short-term US Treasury bonds as reserves for USDT. Meanwhile, as of February 2025, Circle, which issued USDC, reported holding more than 22 billion US dollars of US Treasury bonds.
With the increase in the circulation of stablecoins and the rise in global demand, the demand for low-risk assets such as government bonds as corresponding collateral has also grown. The connection between digital assets and the US debt market is becoming increasingly close, and private stablecoin issuers are increasingly becoming stable institutional buyers of US Treasury bonds. This emerging source of demand may add new resilience and liquidity to the US Treasury bond market, especially against the backdrop of widespread concerns over the willingness of overseas investors to purchase US Treasury bonds.
The proposed legislation aimed at clarifying the role of stablecoin issuers in the ecosystem of the US Treasury bond market has further strengthened expectations of potential demand growth. The “STABLE Act of 2025” of 2025 and the “GENIUS Act of 2025” of 2025, which are currently under review in Congress All 2025) require that stablecoin issuers must use high-quality liquid assets, including short-term government bonds, as full collateral to support the stablecoins they issue.
However, due to the political differences between the Democratic Party and the Republican Party, these bills may face delays. Recently, nine lawmakers withdrew their support for the bill, citing the lack of adequate rules to protect investors. If these bills are passed, they will effectively require the entire stablecoin industry to invest in government bonds, thereby more deeply integrating the digital dollar into the US financial infrastructure, enhancing people’s trust in stablecoins, and at the same time consolidating the dollar’s dominant position in the digital market.
Goldman Sachs ‘investments in IBIT and FBTC have further enriched the investment ecosystem of Bitcoin, enhancing the liquidity and depth of the market. The large-scale entry of institutional investors often leads to more capital inflows, promoting the market to become more standardized and mature. As a globally renowned investment bank, Goldman Sachs ‘investment decisions have certain guiding significance and may trigger a herd effect among other institutions and investors, further promoting the development of the Bitcoin market.
In the logical framework of Bitcoin value investment, Goldman Sachs ‘entry has added new and powerful evidence to it. On the one hand, Goldman Sachs ‘professional team must have conducted in-depth research and analysis before making such a large-scale investment decision, which implies that the intrinsic value of Bitcoin has been recognized by top institutions in the traditional financial field. On the other hand, Goldman Sachs ‘investment activities help enhance the recognition and acceptance of Bitcoin in the global financial market, further expand its application scenarios and market space, and thereby promote the continuous growth of Bitcoin’s value.
For instance, as more and more institutional investors participate in the Bitcoin market, Bitcoin as an asset class will gradually be incorporated into more investment portfolios, and its value discovery function will be better exerted. The close connection between stablecoins and the US Treasury bond market, as well as the future surge in demand for Treasury bonds, also reflect the vigorous development of the digital asset sector from the side. This is undoubtedly a positive signal for the crypto ecosystem where Bitcoin is located, which may attract more funds to flow into this field and thereby enhance the value of Bitcoin.
Of course, investment is always accompanied by risks. The high volatility of the Bitcoin market remains an important challenge that investors need to face. But Goldman Sachs ‘current move undoubtedly sends a positive signal to the market, prompting more investors to re-examine the value investment potential of Bitcoin. Amid the fluctuations and changes in the market, the value investment path of Bitcoin may become clearer and full of opportunities precisely because of the participation of these institutions and the deep integration of the digital asset field with the traditional financial market.
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