Goldman Sachs Opens $100B Treasury Fund to Crypto Firms as Bitcoin Holds Near $84K

Wall Street's push into digital assets took another practical step this week, even as rising Treasury yields kept crypto traders cautious. Two developments from the United States set the tone for the market on Tuesday: Goldman Sachs opening a flagship Treasury fund to crypto firms, and Bitcoin finding support after a bond-driven pullback.

Goldman Sachs Connects a $100 Billion Treasury Fund to Crypto

Goldman Sachs is making its Treasury fund, known by the ticker FTIXX, available to institutional digital-asset firms through Lynq, a settlement network used by crypto companies. The fund holds roughly $100 billion in short-term U.S. government paper. Its latest monthly filing with the SEC showed about $105 billion in net assets at the end of August, with a seven-day net yield of 3.58%.

Access is limited to eligible U.S. institutional clients, and trades are handled by tZERO Securities, an SEC-registered broker-dealer. FTIXX becomes the second asset available on the Lynq platform, following a tokenized Treasury fund issued by Arca. The network serves trading and market-making firms such as B2C2, Wintermute, Galaxy, FalconX, Crypto.com and Fireblocks, all of which often need to move large sums of cash between trades.

Why Goldman Chose Not to Tokenize

The most notable detail is what Goldman did not do. Unlike BlackRock's BUIDL and Franklin Templeton's BENJI, which are tokenized fund products, FTIXX remains a conventional money market fund. Crypto firms get access to Treasury-backed yield without holding a new token or taking on additional token custody.

For institutions, that approach keeps the product inside the existing regulatory perimeter and avoids much of the legal and technical work involved in issuing a tokenized security. It also shows that traditional finance has more than one route into crypto: some asset managers are building blockchain-native products, while others are simply connecting established funds to the infrastructure crypto desks already use. Lynq's leadership has said clients wanted a Treasury asset for idle cash between trades.

Bitcoin Steadies Near $84,000 as Yields Take Center Stage

On the market side, Bitcoin rose about 1% on Tuesday to just above $84,200, according to CoinDesk data, after buyers stepped in on dips toward $82,500. Ether led the major tokens with a gain of around 2%, trading near $2,720.

The backdrop is dominated by bonds and oil. The 10-year Treasury yield held near 5.25% after climbing on Monday to its highest level since 2007, and traders have been adding to bets on further Federal Reserve rate increases. Higher yields make non-yielding assets like Bitcoin less attractive, which explains the recent pullback from levels above $87,000. FxPro analyst Alex Kuptsikevich noted that a retest of the $82,000 area would be normal after last week's consolidation, and that a sustained move below $80,000 would signal the market is not ready to move higher soon. A renewed push, he added, could open the way to levels above $87,000.

ETF Flows Stay Positive, but Modest

U.S. spot Bitcoin ETFs took in about $31 million on Monday, according to SoSoValue, while Ether funds added about $17 million. Solana and XRP funds together attracted another $17 million. The only outflow among crypto ETFs came from the sole U.S. Zcash fund, which lost about $8 million. Total crypto market capitalization stands near $2.87 trillion, and analysts say the market remains in a short-term downtrend while it trades below $2.90 trillion.

What to Watch Next

The next major catalyst is Wednesday's release of August personal consumption expenditures (PCE) inflation data from the Commerce Department, the gauge the Fed watches most closely. A hotter-than-expected reading would strengthen rate-hike expectations and could push yields even higher, adding pressure on risk assets. At the same time, Goldman's move underlines a longer-term trend: institutional cash management and crypto market infrastructure are becoming increasingly intertwined.