Goldman Sachs drops $2.25 billion to hijack the Bitcoin yield market and leapfrog BlackRock by 19x
Goldman Sachs agreed to acquire NEOS Investments for up to $2.25 billion, adding a $30 billion options-income ETF platform that includes one of the largest Bitcoin income funds.
The cash-and-equity deal announced Aug. 12 covers NEOS’ 19 options-based income ETFs and is expected to close in the first quarter of 2027, subject to regulatory approval and other customary conditions. Part of the consideration depends on performance and service commitments.
The acquisition would expand Goldman Sachs Asset Management’s existing $40 billion income and outcome-oriented options ETF business and help lift the firm’s broader global ETF platform to about $130 billion when combined with NEOS and Innovator Capital Management.
Goldman said the combination would make it the eighth-largest active ETF provider based on assets as of June 30.
Goldman CEO David Solomon said NEOS complements the firm’s existing buffer, managed-outcome and income strategies as investor demand for active ETFs grows.
The wider derivative-income ETF market has expanded to about $180 billion, with assets growing at an annualized rate of more than 70% since 2021, Goldman said, citing Morningstar.
Goldman Sachs gets a head start on BlackRock with BTCI
Among the funds changing hands is the NEOS Bitcoin High Income ETF, or BTCI, which had $1.10 billion in net assets as of Aug. 11.
Per the fund's prospectus, BTCI gives investors Bitcoin-linked exposure without directly owning the cryptocurrency.
The fund invests through Bitcoin exchange-traded products and uses an options strategy that seeks to generate monthly income by writing calls. This allows investors to participate in Bitcoin price movements while giving up some potential upside in exchange for option premiums.
BTCI reported a 26.73% distribution rate and a 1.62% 30-day SEC yield as of July 31, while its NAV was down 25.54% for the year and 41.66% over one year. Its $0.6458 July payout was preliminarily estimated to consist of 92% return of capital.
BTCI is particularly notable because Goldman had already been preparing to enter the same corner of the ETF market itself.
In April, the bank filed an amended prospectus with the Securities and Exchange Commission (SEC) for the Goldman Sachs Bitcoin Premium Income ETF, which would seek income and Bitcoin-linked capital appreciation by selling call options tied to Bitcoin ETPs. The proposed fund had not begun investment operations when the filing was made.
Bloomberg senior ETF analyst Eric Balchunas pointed out that BTCI would allow Goldman to leapfrog BlackRock’s recently launched iShares Bitcoin Premium Income ETF (BITA), which manages roughly $60 million in assets.
This means BTCI would give Goldman exposure to an existing Bitcoin income fund nearly 19 times larger than the asset manager's if the acquisition closes.