Goldman Sachs Plans Bitcoin Fund That Buys Other Bitcoin Funds

Goldman Sachs, one of Wall Street's biggest banks, has filed paperwork to create a new Bitcoin investment fund with a twist — it won't actually own any Bitcoin.

Instead of buying Bitcoin directly like other funds do, Goldman's proposed "Bitcoin Premium Income ETF" (ETF = a fund you can buy and sell like a stock) would invest in other Bitcoin funds. Think of it like buying a basket that holds other baskets of Bitcoin, rather than buying Bitcoin itself.

Here's how it would work: • The fund would buy shares of other Bitcoin ETFs • It would also trade options (contracts that bet on price movements) on these Bitcoin funds • Investors would get exposure to Bitcoin's price changes without Goldman directly holding the cryptocurrency

Why does this matter? This approach shows how traditional banks are finding creative ways to offer Bitcoin investments to their clients. While companies like BlackRock and Fidelity have launched funds that directly buy and hold Bitcoin, Goldman is taking a more indirect route — possibly to avoid the complexities of storing cryptocurrency.

This move surprised many experts. Bloomberg analyst Eric Balchunas wrote he "didn't see this coming" and thought major banks like Goldman Sachs and JPMorgan would avoid crypto investments altogether.

The filing comes as Bitcoin investing becomes more mainstream, with Morgan Stanley recently launching its own Bitcoin fund that generated $34 million in trading on its first day.

This is an AI-generated summary. Read the original article at: https://www.theblock.co/post/397412/goldman-sachs-files-for-bitcoin-etf-that-invests-in-other-bitcoin-etfs?utm_source=rss&utm_medium=rss