According to Goldman Sachs' latest analysis, macro uncertainties remain significant even as near-term equity risks ease, with markets potentially "underpricing" deeper downside risks. The bank's warning comes as U.S. 10-year Treasury yield has moved above 4.5% and climbed past 4.63%, marking its highest level since February 2025. As reported by AMBCrypto, Goldman Sachs specifically warns that rising oil prices and geopolitical tensions around the Strait of Hormuz could trigger energy shortages, with the bank noting that "the longer we go without a clear peace agreement and a convincing reopening of the Strait of Hormuz, the more likely we are to revisit that risk as energy product shortages become clearer." Despite these macro headwinds, a major market metric indicates investors could be starting to price in crypto's potential undervaluation, suggesting crypto may not move in lockstep with the risk-off environment.
According to the latest SEC 13F filing, Goldman Sachs completely exited its XRP and Solana ETF holdings in Q1 2026, marking a significant reversal from its previous altcoin positions. The bank had entered XRP and Solana ETF positions in late 2025, briefly becoming one of the largest institutional holders of the XRP ETF at approximately $154 million from multiple providers including Bitwise, Franklin Templeton, Grayscale and 21Shares, with XRP exposure totaling $152 million and Solana holdings amounting to $108 million. This represents a complete exit from altcoin exposure after major fourth-quarter positions, as reported by crypto.news. The move came despite broader institutional adoption of crypto ETFs continuing into 2026, with Bitcoin ETF holdings remaining above $700 million even after Goldman trimmed some of its exposure during the quarter.
Rather than completely abandoning crypto exposure, Goldman Sachs initiated a significant position in Hyperliquid Strategies Inc. (PURR), purchasing roughly 654,630 shares valued around $3.33 million during Q1 2026. The company itself reportedly holds approximately 20 million HYPE tokens tied to the growing Hyperliquid ecosystem, positioning Goldman strategically within the decentralized derivatives trading infrastructure. This represents a major shift toward Bitcoin exposure through traditional ETFs and derivatives, coming only days after the first Hyperliquid ETFs began trading in the United States. The $700 million Bitcoin ETF position remained intact throughout Q1 2026, unchanged despite the broader altcoin ETF exits, reinforcing Bitcoin's dominant institutional allocation status while the firm simultaneously moves into infrastructure plays.
Despite macro headwinds, crypto markets continue to show strong liquidity on a monthly basis, with high-cap assets outperforming the S&P 500 in May. As reported by AMBCrypto, monthly flows are turning positive with ETFs adding $1.51 billion, stablecoins seeing $2.49 billion in inflows, and CEX holdings increasing by $3.29 billion. This divergence supports the view that crypto may be underpriced, with liquidity continuing to build underneath the surface. The technical picture shows oil prices climbing nearly 10% in under two weeks, moving closer to $120/barrel and bringing inflation risks back into focus, while rising Treasury yields are adding further pressure as investors rotate into bonds. However, stablecoin flows may be the key variable this cycle, with the crypto market showing resilience despite short-term volatility pushing prices below key resistance levels.
Goldman is not the only major allocator rotating out of crypto funds, with Harvard University's endowment cutting its IBIT stake by roughly 43% to about $117 million and fully closing an $86.8 million Ethereum ETF position. Trading firm Jane Street slashed its IBIT holdings by about 71% and FBTC by roughly 60%, then rotated into Ether ETFs, while Emory University exited its small IBIT position entirely. However, not every institution pulled back, with Abu Dhabi's Mubadala increasing its IBIT holdings by about 16% to roughly $566 million, and Dartmouth's endowment opening a small Bitwise Solana Staking ETF position. The volume of altcoin ETF exits tracks the sharp drawdowns in XRP and Solana, both down more than 40% year-on-year, though Q2 disclosures due in August will show whether the rotation continued or whether institutional appetite for altcoin funds returns.
