The Bitcoin investment of Goldman Sachs has plummeted significantly since its last regulatory filing because of the declining prices of the cryptocurrency.
The bank revealed the indirect exposure to about 13,741 Bitcoin in spot exchange-traded funds. These investments were worth approximately 1.71 billion at the close of fourth-quarter 2025.
Then, the bitcoin traded close to the late-cycle highs that favour higher valuation on institutional portfolios. Today, Bitcoin is traded at approximately 68,700, which is half of the exposure, amounting to approximately 944 million.
The movement suggests a paper fall of approximately 766 million, or approximately 45 per cent by sheer movement of prices. The loss is a sign of market volatility and not the selling or restructuring of the portfolio.
The exposure of the Bitcoin ETF by Goldman Sachs follows the movements of crypto prices. [Forbes]
Goldman Sachs Bitcoin Strategy Relies On ETF Exposure
The Bitcoin strategy of Goldman Sachs does not imply taking the crypto on its balance sheet. The bank instead relies on regulated exposure to Bitcoin ETFs through spot Bitcoins. These products store Bitcoin as custodians of shareholders and follow the price of the asset closely.
This arrangement minimises custody risks and regulatory issues for big institutions. Goldman has more than 99 per cent of reported crypto exposure in spot funds as opposed to futures-based vehicles.
This model conforms to risk-conservative theories employed by large banks. It can also be easily entered and exited, as opposed to holding tokens.
How Do Form 13F Filings Explain The 45% Drop?
The disclosures in Form 13F reflect the value of portfolios at the end of a quarter as opposed to the purchase price or the real-time level of the market.
A filing by Goldman showed a Bitcoin trading of about 112,000 by the time it was filed. The estimate was calculated by analysts with the help of the BlackRock iShares Bitcoin Trust share price.
The bank stated that it invested about $1.28 billion in that ETF only. The value divided by the disclosed shares gave the implied price of Bitcoin.
When one compares that amount with the current cost of $68,700, it can be seen that the change has been a negative one (reduction). Spot ETFs are a good reflection of Bitcoin; therefore, this calculation is a good market value comparison.
ETF values are a reflection of the fast market correction of Bitcoin. [Decrypt]
BlackRock Dominates Goldman Sachs Crypto Exposure
iShares Bitcoin Trust by BlackRock is the largest share of the crypto exposure by Goldman Sachs. The bank possesses over 19 million shares in the fund. This stake is approximately 11,400 BTC equivalent.
Others are the Fidelity Wise Origin Bitcoin Fund and the Bitcoin Trust of Grayscale. Smaller allocations rest with the Bitwise, ARK 21Shares, Invesco Galaxy and the WisdomTree products.
This spreads issuer risk, and at the same time, it keeps the prices correlated. Nevertheless, the vulnerability of Bitcoin is impacting all the holdings at once.
What Do Options Positions Signal About Risk Management?
Goldman has created large options holdings on Bitcoin ETFs as well. The bank has revealed approximately 157 million call options exposure. Calls do well when the prices increase.
There are, however, over 600 million put options that Goldman owns. Puts gain value when the market is declining and provide protection on the downside.
The increased put assignment indicates a protective attitude toward volatility. This insurance will protect against losses and retain strategic exposure to crypto.
Options hedging brings out the conservative crypto posture of Goldman. [Bloomberg]
Institutional Bitcoin Demand Faces Volatile Reality
The Goldman Sachs investment in Bitcoin brings to the fore the fact that institutions are at the mercy of sharp movements in crypto.
ETFs are easy to access, but are unable to protect against price corrections in the portfolio. Even advanced banks suffer plunging losses unrealised during downturns.
However, Bitcoin is still regarded as a long-term diversification instrument by many investors. The Goldman Sachs strategy on bitcoin indicates a measured investment as opposed to vigorous buying.
Now the market watchers can gauge whether the market has stabilised the prices or continues to be volatile. The result can impact general institutional interest towards digital assets in 2026.
Also Read: Bitcoin Market Update: Bitcoin Market Update Shows Bitcoin Price Rebound After Sharp Fall
FAQs
Q1: How much has Goldman Sachs’ Bitcoin investment fallen?
A1: It declined about $766 million, representing roughly a 45% unrealised loss.
Q2: Does Goldman Sachs own Bitcoin directly?
A2: No. It gains exposure mainly through spot Bitcoin ETFs.
Q3: Which ETF holds the largest share of Goldman’s position?
A3: BlackRock’s iShares Bitcoin Trust accounts for most of the exposure.
Q4: Why hold put options alongside ETFs?
A4: Put options hedge downside risk and protect against falling Bitcoin prices.
