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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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Volvo DD25 Electric compactor gets to work in Yolo County, California

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Volvo DD25 Electric compactor gets to work in Yolo County, California

Yolo County, California depends on its climate for continued agricultural success. As such, the county’s leaders are taking environmental stewardship seriously by aiming for full carbon neutrality by 2030. To help achieve that goal, they’re putting zero-emission machinery like the Volvo DD25 Electric compactor to work.

We got our first chance to sample the DD25 Electric at Volvo Days last summer, where the all-electric tandem roller’s vibrating drums impressed dealers and end users alike. It was no surprise, then, that when Yolo Country fleet superintendent, Ben Lee, when shopping for a compactor the DD25 Electric was high on his list.

“The DD25 Electric will help us achieve our goals in several ways,” explains Lee. “By reducing emissions, lowering noise levels, being more energy-efficient, improving working conditions and promoting environmentally friendly practices … we’ll use it to compact soil, gravel and other base materials for road and foundation projects, as well as rolling out and leveling asphalt during road construction and resurfacing.”

To help Lee handle those various projects, the Volvo’s drum frequency can be adjusted from 3500 vpm (55 Hz) to 4000 vpm (67 Hz) to cater to different applications and materials.

The DD25 Electric offers other benefits, as well – like a 20 kWh 48V battery that offers up between six and eight hours of continuous operation. That’s could be several shifts in the kind of conditions Yolo’s work crews will encounter, meaning it will only have to get put to bed (Volvo recommend overnight AC charging) two or three times a week.

Getting power to the compactor, too, is something Yolo is considering. “There are some remote areas in the county, so we’re looking into a mobile, self-contained charging unit as well,” explains Lee, apparently referencing the Volvo PU130 mobile battery. “So we wouldn’t have to bring the machine back to the yard each night during a long-term project.”

Yolo County views electric equipment as an essential step in reducing emissions and energy consumption, especially as communities work towards stricter regulations and sustainability goals.

Electrek’s Take

Ed Galindo, E-Mobility Product Manager at VCES, educates Yolo employees; via Volvo CE.

This press release came to us ahead of the devastating wild fires in Southern California that are dominating headlines right now – so much so that I effectively sat on the news for a few days, debating whether or not we should even be talking about a California news story that isn’t about the fires right now.

But I realized: this story is about the fires. Climate change driven by combustion and carbon emissions is driving climate change and that’s making fires like these possible … and I should have run it sooner.

SOURCE | IMAGES: Volvo CE.

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CES2025 | Kubota brings electric equipment, robots, and hydrogen to CES

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CES2025 | Kubota brings electric equipment, robots, and hydrogen to CES

Kubota came to this year’s CES with a sprawling display filled with electric equipment, hydrogen gensets, and an onslaught of commercial robots ready to mow, farm, dig, and build. If you weren’t impressed by Kubota’s display this year, you weren’t paying attention.

Kubota gave us a sneak peek of its KATR farm robot – itself a smaller, updated version of last year’s New Agri Concept – before the doors officially opened last week. Kubota’s robotic farm buddies promise to be able to quietly and autonomously haul stuff from one end of the farm to another, or pull carts and specialized implements along predetermined paths.

KATR uses self-leveling technology and active suspension to ensure its cargo deck stays level when working on the sort of uneven terrain found on farms or construction sites.

Kubota KATR w/ self-leveling cargo deck; photo by the author.

That doesn’t mean the New Agri Concept is dead, though. Agri Concept 2.0 debuted as an electric tractor concept offering AI-powered automation and a fully electric powertrain. The new version features a Lite Brite-style “grille” that it uses to communicate its current mode, direction, and other important information with the people it shares a job site with.

On the more practical side, Kubota showed off its KX38-4e Electric compact excavator. First shown in overseas markets in 2022, the KX38-4e Electric features a 49.2 kWh lithium-ion battery that’s good for up to five hours of continuous operation. More than enough to complete a typical day of work on a construction site when you factor out idle time.

An onboard DC fast charger means it can be quickly recharged between shifts, too. But when there’s no grid power on the site, charging can be a challenge. That’s why Kubota has hydrogen genset for zero-emission on-site power generation.

Looked at individually, each of the new electric Kubota products on display might be impressive. The real magic, though, is in the way the Kubota machines work together as a holistic job site or farm solution.

“At Kubota, we believe that truly listening to our customers drives innovation in every aspect of what we call the ‘Work Loop’,” explains Brett McMickell, Chief Technology Officer of Kubota North America. “The Work Loop — an essential cycle of assessing, analyzing, and acting — has always been fundamental to effective task management. With the integration of advanced sensors, AI-driven analysis, networking protocols, automation, and robotics, we are enhancing this cycle to be more seamless and efficient than ever before.”

That was obvious in some of the more thoughtful implements and attachments on display, including a Smart Plant Imager that uses advanced robotics and “hyper-spectral imaging” cameras to capture real-time data and insights on a plant-by-plant level – as well as a Smart Autonomous Sprayer and Robotic Pruner that that classifies buds and canes based on position and fruiting potential, it optimizes production precision and accuracy.

The more you look, the more impressive Kubota’s farming solution gets. “We will continue to learn from many of our customers across segments to iterate the next product and technology solution that will help them manage tomorrow’s challenges and grow their businesses,” McMickell added. “This is how Kubota works to make a better quality of life for individuals and society.”

There was more, of course. Autonomous versions of the company’s electric zero-turn mower with GPS-powered route memory, fun accessory baskets for the robots, even a weird, jet engine looking thing that I forgot to ask about (below). I was genuinely impressed, in other words, and can’t wait to see what Kubota comes up with next year.

Kubota CES2025 | more photos

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Tenways C GO 600Pro commuter e-bike is as smooth as it gets

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Tenways C GO 600Pro commuter e-bike is as smooth as it gets

The e-bike industry has stalled a little bit in terms of features, and with harsh new legislation coming in from places like California, maybe it is time to start looking at e-bikes that are light, efficient, and smooth rather than how much wattage they can output. The Tenways CGO 600Pro, which comes in at just 37 pounds, is a model e-bike you should keep an eye on…

The CGO 600Pro comes in 2 flavors: a carbon belt single-speed version that Micah reviewed and this one, which is a chain and 8-speed Shimano gears. The belt drive is going to win out on simplicity and weight but if you are expecting to get close to the ‘class 1’ top speed of 20mph or need to go up some significant hills, you’ll want to opt for the chain/gear version here.

One thing I love about this bike is the tradeoff decisions. These keep the price low and weight down while still providing a great ride. The spec sheet overall is solid but not top-shelf.

Tenways CGO600 Pro tech specs (chain/geared version)

  • Motor: 350 Watt rear hub motor with 45 Nm of torque
  • Top speed: 20 mph (32 km/h)
  • Range: Claimed up to 53 miles (85 km)
  • Battery: 36V 10Ah (360 Wh)
  • Weight: 37 lb (16.8 kg, over 40lbs with fenders, kickstand, etc)
  • Frame: 6061 aluminum alloy
  • Tires: CST Puncture-proof 700*45C-size Tires
  • Brakes: Tektro dual-piston hydraulic disc brakes
  • Gearing: Shimano 8-Speed Claris
  • Extras: Compact LED display, 4 pedal assist levels, slim fender set, kickstand, internally routed cables, LED lighting, removable battery, Tenways app integration, torque sensor, four color options

No Throttle?

Note that as a class 1 e-bike, neither belt/chain version has a throttle. While this may be controversial to some, it not only simplifies the bike, it makes it a Class 1, which will be legal in the most places. I tend to think of no throttle as a “foot throttle” and for the commuter application, this will serve well. Would I appreciate a throttle on a hill start? Perhaps.

The idea of this bike is to just enhance your pedal bike experience. You are going to get some exercise on this bike versus a bike that is a glorified low-power moped that runs on throttle with vestigial pedals.

More importantly, the torque sensor here is phenomenal; I mean, it is probably the best torque sensor I’ve ridden connected to a rear hub motor. The acceleration is smooth and strangely powerful for the 350W/45nm motor. Significant hills are a breeze, and this is one of the few bikes where I forget that I’m using an e-bike sometimes (until I look down and I’m going 20mph with little effort). Hills are also where the gearing really helps.

The tires are also the perfect size for a commuter with puncture resistance and treads that will do OK in rain and snow.

The bike itself is also very stealthy in terms of showing that it is a powered e-bike. The small 36V, 10Ah battery is integrated magnificently into the narrow downtube of the bike. All of the cables are integrated into the bike frame for a super-clean look. The rear hub motor is small but packs a punch. Many people won’t even recognize this as an e-bike. While I’m proud to be riding an e-bike around, perhaps some people would like to keep that on the down-low.

Brakes are great with hydraulic Tektros clasping against 160mm rotors in front and back. It is such a light bike that stopping can be jarring.

Assembly was super easy and took about 30 minutes with the included tool set. The battery came about 40% charged but was ready to go within a few hours with the 3A charger. Shoutout to Tenways for using a water-resistant standardized barrel charger adapter and not some proprietary adapter so that I can use one from another bike when I inevitably lose it.

Electrek’s take

The Tenways CGO600 is a fantastic light, clean, stiff and smooth e-bike that I have 0 reservations about recommending. While the battery and motor are small, they power the light bike admirably and for around 50 miles (your mileage will vary).

Currently there is a $200 off promotion code “HAPPY2025TW” at checkout bringing the CGO600Pro down to $1399 which is an amazing price for this bike:

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