In the third quarter, Wall Street banks like Goldman Sachs, Bank of America, and Morgan Stanley continued to accumulate Bitcoin through spot bitcoin exchange-traded funds for their wealth management clients. While allocations remained relatively stable during this time, the upcoming fourth quarter could see increased interest due to recent new all-time highs in Bitcoin prices.
Goldman Sachs reported holding spot bitcoin ETF shares worth $710 million in the quarter ending on Sept. 30, with clients’ allocations nearly doubling from the previous quarter. Most of the bank’s shares were in BlackRock’s iShares Bitcoin Trust (IBIT), amounting to just under 13 million shares.
Other major banks and wealth management operations, including Morgan Stanley, Cantor Fitzgerald, Royal Bank of Canada, Bank of America, UBS, and HSBC, did not significantly change their positions. A new player, Australian investment bank Macquarie Group, entered the scene by purchasing 132,355 shares of IBIT worth $4.8 million.
The period from July to September saw Bitcoin’s price fluctuating between $53,000 and $66,000, with limited price movement. However, the landscape changed drastically in the fourth quarter following the U.S. presidential election and the subsequent surge in Bitcoin’s price, breaking records and reaching new highs.
The recent bullish momentum in Bitcoin, coupled with the anticipation of a crypto-friendly administration under Donald Trump, may lead to a fear of missing out (FOMO) among institutional players and their clients. This renewed interest could result in more dynamic 13F filings in the future, reflecting increased allocations to cryptocurrencies.
Overall, the evolving market conditions and changing political landscape are expected to drive greater institutional interest in Bitcoin and other cryptocurrencies. As the industry continues to mature and regulatory clarity improves, more traditional financial institutions may seek exposure to digital assets to diversify their portfolios and capitalize on potential growth opportunities.
