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Why Goldman Sachs is jumping headfirst into crypto while rivals retreat

When the SEC opened the door in January for bitcoin exchange-traded funds to hit the mainstream, many traditional financial institutions across Wall Street and beyond finally had the opportunity to buy into crypto. Since then, money has poured in, but in fits and starts.

On Wednesday, banks and hedge funds with more than $100 million in assets hit a deadline to file their second-quarter 13F reports, disclosing their investments and what they bought and sold over a three-month stretch.

Goldman Sachs went big in the quarter, while rival Morgan Stanley trimmed its crypto holdings. JPMorgan has yet to make a big splash.

There are no shortage of opportunities for firms that want to take their time getting into the market. Following an array of public ETF listings in January tied to bitcoin, the Securities and Exchange Commission went a step further last month, clearing the way for spot ether ETFs, allowing investors to get access to the second-largest cryptocurrency. Those new holdings will start showing up in third-quarter reports.

In the period from March through June, Goldman Sachs made its debut in the crypto ETF market, purchasing $418 million worth of bitcoin funds. Its biggest position is a $238 million ownership in shares of BlackRock’s iShares Bitcoin Trust. The bank also owns shares in spot funds from Grayscale, Invesco, Fidelity and others.

Morgan Stanley was the first among the big players on Wall Street to give the green light to its 15,000 financial advisors to start pitching clients, who have a net worth north of $1.5 million, bitcoin ETFs, specifically those issued by BlackRock and Fidelity. Up to this point, wealth management businesses have only facilitated trades if customers requested exposure to the new spot crypto funds.

Of Morgan Stanley’s $1.5 trillion in assets under management, the bank disclosed in its filing that it trimmed its position in spot bitcoin ETFs to around $189 million from roughly $270 million. Most of those cuts were due to sales of almost all of its shares in the Grayscale Bitcoin Trust, which has a much higher management fee than other ETFs. The vast majority of the bank’s spot bitcoin holdings are now through the iShares trust.

JP Morgan reported minimal crypto exposure of around $42,000 worth of shares in Grayscale’s bitcoin fund and another $18,000 worth of the ProShares Bitcoin Strategy ETF. HSBC has nearly $3.6 million worth of spot bitcoin holdings, all from the fund issued by Ark 21Shares, UBS has around $300,000 worth of spot bitcoin ETF holdings, and Bank of America has collective holdings of around $5.3 million, mostly from BlackRock and Fidelity.

For most of the banks, the vast majority, if not all, of the ETF flows can be attributed to wealth management clients asking for exposure, rather than a decision by the firm to hold the assets on its balance sheet.

Wall Street reveals crypto stakes

While Wall Street investment banks are coming in slowly, hedge funds are taking a more aggressive approach.

Millennium Management, which oversees $62 billion, now holds over $1.1 billion worth of shares in at least five Bitcoin ETFs, and is the single largest holder of shares in BlackRock’s bitcoin fund, with shares worth more than $371 million according to its August filing.

That’s down substantially from the $844 million worth of shares it held as of its May filing, having cut its stake in BlackRock’s fund by about half, and in Grayscale’s by more than half.

London-based Capula Investment Management, one of the top hedge funds in Europe with $30 billion under management, disclosed in a recent SEC filing that it holds more than $464 million in spot bitcoin ETFs, including the funds offered by BlackRock and Fidelity.

Point72 Asset Management and Apollo Management have also jumped into the market as have firms including Citadel Advisors, Jane Street and Fortress Investment Group.

Since launching in January, spot bitcoin funds have seen net flows of around $17.5 billion, bringing total assets in the funds to $53.5 billion as of mid-August. Grayscale’s fund, which existed previously and was converted to an ETF, has seen $19.4 billion in outflows since the change, though its new budget product has seen net inflows of $274 million.

Spot ether ETFs hold more than $7.6 billion as of Tuesday. Barclays analysts noted that trading volume across all spot crypto ETF products has declined, compared to spot exchange volumes.

Still, the new ETF activity has helped lift bitcoin prices, which hit a record above $73,000 in March. The price has since dropped sharply, to under $58,000, alongside volatility in the boarder markets, though it’s still up more than 30% this year.

“The crypto markets are strong because we have the sentiment shift,” Galaxy Digital chief Mike Novogratz told CNBC in May. “Crypto is now an asset class. It will be next year, it will be forever. And it wasn’t that way two years ago. There was risk around the asset class, and it’s been de risked.”

Read more about tech and crypto from CNBC Pro

Bitcoin mining lures new investors

ETFs aren’t the only way investors are playing the market.

Daniel Sundheim’s D1 Capital built up a bitcoin mining position in the latest quarter, taking advantage of a shift as miners retrofit their facilities to service artificial intelligence clients. Like crypto mining, artificial intelligence workloads require immense amounts of power.

D1, which managed about $19 billion at the beginning of the year, bought nearly $5.4 million worth of Bitdeer Technologies, $17.3 million of Iris Energy, and nearly $17.4 million in shares of Hut 8 Corp.

Hut 8 said in its first-quarter earnings report that it had purchased Nvidia’s AI processors and secured a customer agreement with a venture-backed AI cloud platform as part of its expansion. Iris Energy expects to generate up to $17 million in annual revenue from its AI cloud services.

The combined market capitalization of the 14 major U.S.-listed bitcoin miners hit a record high of $22.8 billion on June 15, according to a note from JPMorgan, which has also been investing capital into an ETF of miners and individual companies. UBS has added shares of Bitdeer, Bitfarms, Bit Digital, Hut 8, as well as more than $5 million in Iris Energy, as of its latest 13F filing.

Sundheim, who previously built up a reputation as a savvy investor during his 15-year tenure at Viking Global Investors, has changed his tune on bitcoin. In 2019, he equated Canadian pot companies to the closest thing to a bubble since bitcoin.

WATCH: Bitcoin miners are shifting to AI

Bitcoin miners are shifting to AI

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BMW hits pause on EV production in the US, but don’t expect prices to rise yet

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BMW hits pause on EV production in the US, but don't expect prices to rise yet

BMW told dealers it plans to freeze EV production in the US in May as it deals with the uncertainty surrounding the new auto tariffs. Despite the pause, BMW said it won’t raise prices on most imported vehicles. At least, for now.

Why is BMW pausing EV production in the US?

After celebrating the assembly of its seven millionth vehicle in the US this week, BMW, like most major automakers, is bracing for a shakeup under the Trump Administration.

According to Automotive News, BMW told its dealers on April 29 that it will “postpone” EV production in the US in May. The note didn’t specify a reason, but it’s more than likely due to Trump’s 25% tariff on vehicle imports.

The luxury automaker has had more success than most of its peers with four electric vehicles: the i4, i5, i7, and iX. However, all four are built in Germany.

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In the first three months of 2025, BMW sold 13,538 EVs, up 26% from Q1 2024. The i4 was BMW’s top seller with sales surging 57% to 7,125, followed by the iX at 3,626. In comparison, Mercedes-Benz sold just 3,472 electric vehicles in the US in the first quarter, down 58% year-over-year (YOY).

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2025 BMW i4 M50 xDrive (Source: BMW)

Sebastian Mackensen, President & CEO of BMW of North America, said the company “remains in a strong position in the US, where the majority of the vehicles we sell in this market are also assembled.”

BMW also told dealers in the memo that it will not raise prices on most imported vehicles through June. The only exception is the 2 Series and M2 performance coupe.

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2026 BMW iX xDrive60 (Source: BMW)

The news comes after most major automakers, including GM, Volvo, Mercedes-Benz, Volkswagen, and Stellantis, withdrew their financial guidance this week due to the uncertainty caused by Trump’s tariffs.

Earlier today, Ford CEO Jim Farley told CNN, “We’re all trying to figure this out to do the right thing for the country,” adding, “It’s going to take a little time.” In the meantime, expect to see more drastic measures being taken.

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Ford is still offering big discounts including employee pricing and free EV chargers

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Ford is still offering big discounts including employee pricing and free EV chargers

After extending several promotions this week, Ford is offering significant discounts that could save you thousands. In addition to employee pricing on most Ford and Lincoln vehicles, the company is offering a free home charger with the purchase of an EV. Here’s how you can snag some discounts.

Ford launched its “From America, For America” campaign earlier this month, offering employee prices for all on most 2024 and 2025 models.

The promo was initially expected to end on June 2, but CEO Jim Farley told CNN in an interview on Wednesday that the company is extending it through July 4. Although the campaign now runs another month, Farley said he can’t promise prices won’t go up when the offer expires.

As for how much of a discount, it will depend on the vehicle’s cost. Under the employee pricing plan, the 2025 Mustang Mach-E, with an MSRP of $36,495, costs just $34,599. The 2025 F-150 Lightning, with an MSRP of $62,995, is nearly $5,000 off, at just $58,183.

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“We want to keep our prices competitive and low,” Farley explained. Like most automakers, Ford is bracing for the impact of the new auto tariffs in the US.

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2025 Ford Mustang Mach-E (Source: Ford)

Outside of Tesla, Ford builds a greater percentage of vehicles in the US than any other major automaker. According to Farley, “This is an opportunity for Ford.” He explained that Ford has “a different footprint, a different exposure for tariffs.”

Ford imports around 21% of the vehicles it sells in the US. Crosstown rival GM imports around 46%. According to S&P Global Mobility, Ford made around 2 million cars in the US last year. It also built around 391,000 in Mexico and 54,000 in Canada.

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Ford Mustang Mach-E (left) and F-150 Lightning (right) (Source: Ford)

For EV buyers, Ford is also extending its Power Promise program, which offers a free Level 2 home charger (plus standard installation) with the purchase of an F-150 Lightning or Mustang Mach-E.

Other benefits include 24/7 live electric vehicle support, roadside assistance, and an 8-year, 100,000-mile battery warranty. The promo now runs through July 6.

Ready to take advantage of the savings? We can help you get started. You can use our links below to find deals on the Ford F-150 Lightning and Mustang Mach-E at a dealer near you.

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Waymo and Toyota partner to go after Tesla with personal self-driving vehicles

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Waymo and Toyota partner to go after Tesla with personal self-driving vehicles

Waymo and Toyota have announced a partnership aimed at competing with Tesla in the development of personally owned self-driving vehicles.

Waymo is already widely regarded as the market leader in autonomous driving, as it currently provides approximately 250,000 autonomous paid rides per week in the few markets where it operates.

Tesla is playing catch-up as it plans to offer the same service Waymo offers, starting in Austin in June, with 10 to 20 vehicles.

However, there’s an area of autonomous driving where Tesla is still seen as the market leader: personally owned self-driving vehicles.

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While Tesla has yet to deliver on its promise of unsupervised self-driving capability in its consumer vehicles, it uses the same technology in those as it plans to do in its internal fleet in Austin, albeit with more Austin-specific training and some teleoperation assists.

Some see this as an opportunity for Tesla to take the lead in personally owned autonomous vehicles if it can solve self-driving on its current hardware, which is a big if.

It already has smoothly integrated sensors that don’t clash with the designs of its vehicles, which is something that car buyers care about, but it’s not a big deal for an autonomous ride-hailing fleet, which is what Waymo has focused on so far.

Now, Waymo and Toyota have announced that they are exploring collaboration on autonomous vehicles :

Toyota Motor Corporation (“Toyota”) and Waymo reached a preliminary agreement to explore a collaboration focused on accelerating the development and deployment of autonomous driving technologies. Woven by Toyota will also join the potential collaboration as Toyota’s strategic enabler, contributing its strengths in advanced software and mobility innovation. This potential partnership is built on a shared vision of improving road safety and delivering increased mobility for all.

More specifically, the collaboration will focus on “next-generation personally owned vehicles (POVs)”:

Toyota and Waymo aim to combine their respective strengths to develop a new autonomous vehicle platform. In parallel, the companies will explore how to leverage Waymo’s autonomous technology and Toyota’s vehicle expertise to enhance next-generation personally owned vehicles (POVs). The scope of the collaboration will continue to evolve through ongoing discussions.

This would point to Waymo integrating its technology into Toyota’s vehicles for consumers.

While it’s still early, Waymo appears to be doing something Elon Musk, Tesla’s CEO, claimed Tesla would be doing soon: announcing deals to integrate its ‘Full Self-Driving’ technology in vehicles built by other automakers.

For more than a year, Musk has said that Tesla has been in discussions with other automakers about licensing its self-driving technology, which is still in development; however, no progress has been disclosed about those discussions yet.

Waymo also announced a similar partnership with Hyundai last year, though this one is expected to first focus on Waymo using Hyundai vehicles for its own autonomous ride-hailing fleet.

Electrek’s Take

This is a big deal. The world’s leader in autonomous vehicles is partnering with the world’s largest automaker.

It’s still early in the collaboration, as per the press release, but it does sound like Waymo is going to develop a hardware suite that can be fitted into Toyota’s consumer vehicles.

This would go after Musk’s argument that Waymo can’t compete with Tesla due to the high cost of its autonomous vehicles.

Waymo’s counterargument is that it hasn’t focused on cost because safety is the priority, and the cost of the vehicles doesn’t matter as much if they are to be used in an internal ride-hailing fleet.

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