Bitcoin Twitter (or Bitcoin X) is having a moment after a 13F filing by Goldman Sachs (GS) disclosed higher stakes in a handful of spot bitcoin exchange-traded funds (ETFs), but the facts are less than meets the eye.

First and foremost, ownership of the ETFs isn’t exactly a bet by the Goldman trading floor on the price of bitcoin (BTC). The stakes are almost surely held by the bank’s asset management arm, Goldman Sachs Asset Management, for its clientele.

Secondly, while the filing — which is a snapshot of ownership as of Dec. 31, 2024 — shows a $288 million stake in the Fidelity Bitcoin ETF (FBTC) and a $1.3 billion stake in BlackRock’s Bitcoin ETF (IBIT), it also shows put option positions with nominal value of more than $600 million (along with a small call option position).

An put option gives the holder the right, but not the obligation, to sell that asset at a predetermined price. It can be seen as protection against price drop, representing a bearish stance.

“This position by Goldman Sachs, similar to many other banks and hedge funds, is not a net long position,” said CoinDesk Senior Analyst James Van Straten. “This is a strategy that reflects the basis trade, also known as the cash and carry trade, balancing potential profits and risks for bitcoin price fluctuations. The ETFs recently had options approved on them so this is most likely directional hedging.”

With the deadline for the fourth-quarter 13F disclosures fast approaching, similar filings — along with misleading headlines — are surely on the way for JPMorgan, Morgan Stanley and other large wealth-management operations.