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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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240 ton Hitachi, ABB electric haul truck is revolutionizing Japanese mining

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240 ton Hitachi, ABB electric haul truck is revolutionizing Japanese mining

With global demand for battery minerals continuing to rise, tech giants ABB, Hitachi, Komatsu, and Sumitomo are working together, developing a clever tech strategy that’s slashed emissions across Japanese mining operations.

The collaboration between Hitachi Construction Machinery and ABB Traction to build a massive, fully electric 240 ton haul truck for extreme duty mining operations reached a critical stage last year, with the completion of their first prototype in February. Over the last year, Komatsu and Sumitomo have signed on as well, and the new haul trucks are doing their thing at the Kansanshi copper-gold mine in Zambia.

“We are delighted to see our collaboration with Hitachi Construction Machinery reaching this crucial step,” Fabiana Cavalcante, Head of Mobile e-Power, ABB Traction, explained last year. “The project is not only helping to tackle the issues involved in dump truck electrification but is also contributing to enabling a low-carbon world through the reduction of greenhouse gas emissions. We look forward to seeing the prototype prove its capability in the Zambian copper-gold mine.”

The deployment at Kansanshi marks the first OEM-led pilot program of this type of electric vehicle in real-world mining conditions.

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And, as for what type of electric vehicle is “this” type of electric vehicle – that was a big topic of conversation at The Electric Mine Conference in Chile last week, where ABB, Hitachi, Komatsu, and Sumitomo discussed not just Hitach’s electrification of FQM’s heavy haul trucks, but also the “trolley-style” overhead charging system that enables the trucks to operate around the clock, without the need to stop for charging.

On level ground, the truck’s electric powertrain draws power from its high-capacity battery. During power-intensive uphill climbs, the truck connects to the overhead wires and draws additional power, minimizing the demands on the battery. On downhill runs, the trucks recharge with regenerative braking.

The mine’s clever three-part system greatly reduces (if not outright eliminates) any downtime associated with charging, and enables the truck to operate almost continuously.

Electrek’s Take


HITACHI CONSTRUCTION MACHINERY COMPLETES PROTOTYPE FULLY ELECTRIC DUMP TRUCK BASED ON ABB’S INNOVATIVE BATTERY TECHNOLOGY
Hitachi Construction Machinery prototype electric dump truck; via ABB Traction.

The International Energy Agency (IEA, a Paris-based, 31 nation organization established in 1974 that provides policy recommendations, analysis and data on the global energy sector) projects that mineral demand from EVs will see 30x growth between 2020 and 2040, with demand for lithium and nickel growing 40x as demand for diesel is dropping faster than most people predicted, reaching a 26-year low last summer.

The IEA’s projections take several battery development scenarios into considerationand include increasingly familiar terms like utility-scale battery energy storage. All of which is to say: we’re gonna be mining a whole lot more, for a whole lot longer – and decarbonizing those operations is critical to doing all this properly.

The current plan is to convert Hitachi’s fleet of 2500 HP EH4000 240-ton diesel mining trucks to electric driveYou can learn more about the ABB eMine process in the company’s conceptual (read: it’s all CGI) launch video from last year, below, then let us know what you think of the group’s collaboration in the comments.

Hitachi haul trucks + ABB eMine


SOURCES | IMAGES: ABB, Construction Equipment, EV Magazine.


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Opel Frontera GRAVEL concept previews next Jeep Renegade electric 4×4

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Opel Frontera GRAVEL concept previews next Jeep Renegade electric 4x4

Hot on the heels of the Fiat 4×4 Grande Panda Manifesto comes another subcompact Stellantis compact with electric drive and off-road ambitions. Meet the Opel Frontera GRAVEL – which might be our best look yet at the next-generation electric Jeep Renegade coming in 2027.

Based on a lifted Frontera EV and riding on a set of bespoke, 7×16″ Borbet CWE wheels wrapped in aggressive AT tires, Opel says its all-electric Frontera GRAVEL’s emissions-free driving makes it ideally suited for “soft-roading” nature drives (their words, not mine), with a rugged, adventurous 4×4 appearance.

Those rugged, Jeep-like good looks are backed up enhanced by the usual overland accessories, including a front-mounted winch, side storage boxes at the rear, and a lattice-style roof rack. A slew of accessory lights mounted on the Thule Canyon XT carrier and hood, as well, for excellent nighttime visibility off-road and (presumably) retina-searing intensity on-road.

“The new Opel Frontera is already standout,” says Rebecca Reinermann, Vice President of Marketing for Stellantis’ Opel and Vauxhall brands. “It is rugged, practical, and perfect for families and everyday adventures. But with the Frontera GRAVEL show car, we’ve pushed the limits, imagining a tougher, more daring, trailblazing version. This concept is built to fire up our fanbase and test the demand for a bolder, more rugged Frontera in the future. It’s all about freedom, adventure, excitement and pushing boundaries.”

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Like the recent Fiat concept mentioned at the top of this post, the production Frontera EV is based on Stellantis’ “Smart Car” BEV-native platform, and features a 113 hp electric motor and more than 300 km of WLTP range (about 185 miles) standard, with the “long range” version able of traveling up to 400 km (about 250 miles) between charges.

Either version comes with the “Pure Panel” digital cockpit featuring dual 10″ displays. For a few dollars quid more, the GS trim adds automatic climate control and Intelli-Seat front seats. And, if Mopar Insider has any idea what’s up, it might actually make for a decent little Jeep Renegade replacement (below).

Electric Jeep Renegade rendering


2027 Jeep Renegade rendering; via ChatGPT.

The Opel Frontera first came to our attention last October, when it became the first new EV from Stellantis to be offered with both ICE and battery power, for the same price – making EV price parity an objectively real thing.

Jeep parent company Stellantis has already confirmed that a new Jeep Renegade that’s priced below the upcoming Jeep Compass EV would be coming to the US as a 2027 model, and it’s expected to share its mechanicals with both the Frontera and Fiat’s recently teased Grande Panda Manifesto. If that does anything for you, let us know in the comments.


SOURCES | IMAGES: Mopar Insider, Stellantis.

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First-ever production electric Honda motorcycle is here – and it’s a cafe racer!

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First-ever production electric Honda motorcycle is here – and it's a cafe racer!

Year after year, a seemingly endless raft of all-electric concept bikes wearing Honda badges have made their way across the motor show stage without ever making it onto the dealer showroom. But now, it’s here: this unmissable, cafe racer-inspired electric Honda motorcycle is the company’s first – and you can buy it!

We got our first look at this first-ever production electric motorcycle from Honda back in March, when leaked type-approval documents hinted at a 75 mph 125 cc-class motorcycle with cafe racer styling and a “WH8000D” designation first surfaced. It was clear, then, that Honda was seriously working on a for-real electric motorcycle – what wasn’t clear was when (or even if) it would ever see productions.

The wait is over


Honda E-VO 75 mph electric motorcycle; via Honda.

The new Honda E-VO is available in dual- or triple-battery versions that feature either 4.1 or 6.2 kWh of battery capacity. On the triple-pack version, riders can enjoy up to 170 km WMTC (about 105 miles) of riding. Recharging takes about 2.5 hours on a standard outlet or about 90 minutes on an L2 (like the Harley-Davidson backed Livewire or Vespa Elettrica electric bikes, DC fast charging is not available).

Both battery configurations drive a motor with a peak power of 15.3 kW, or about 20 hp. And, like all electric motors, all the torque is available at 0 rpm, giving the Honda E-VO in-town performance similar to much higher (than 125 cc) displacement bikes.

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In addition to superior stop-and-go performance, the Honda E-VO offers riders a number of other innovative (for a motorcycle) features, including a 7-inch TFT instrument display paired with a second 7-inch TFT screen for navigation, music, tire pressure, and battery SOC information. The smaller battery pack version of the E-VO includes a front dash cam, while the larger model has both a front and rear dash cam as standard equipment.

The Honda E-VO is available in the black and off-white color schemes (shown). Prices start at 29,999 yuan, or about $4500 for the 4.1 kWh version, and 36,999 yuan (about $5100) for the 6.2 kWh triple-pack version.

Electrek’s Take


Honda E-VO electric motorcycle; via Honda.

Yes, this is a Chinese-market bike built by Honda’s Chinese Wuyang venture. No, we probably won’t ever get something like this in the US, where a raucous, 113 hp 600 cc CBR600RR is somehow positioned as a “good starter bike” by cowards with 3″ wide chicken strips on their tires. That said, if the motorcycle industry as-a-whole wants to survive in North America, zippy, affordable, lightweight motorcycles are exactly what’s needed.

Here’s hoping we get something like this stateside rather sooner than later.

SOURCE | IMAGES: Wuyang Honda; via Ride Apart, the PACK.


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