Goldman Sachs agreed to acquire NEOS Investments in a cash-and-equity deal valuing the ETF manager at up to $2.25 billion, gaining three options-based crypto income funds. The deal hands Goldman NEOS' $1 billion-plus bitcoin fund and explains why a similar Goldman filing from April never launched.
Goldman Sachs agreed to acquire NEOS Investments in a cash-and-equity deal valuing the firm at up to $2.25 billion, subject to certain performance and service commitments. The transaction is expected to close in the first quarter of 2027, subject to regulatory approval and other customary conditions.
Three crypto income ETFs join Goldman
The deal brings the NEOS Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI) and Ethereum High Income ETF (NEHI) under Goldman Sachs Asset Management. None of the three funds invest directly in bitcoin or ether; instead, they gain exposure through exchange-traded products linked to the assets and use options strategies to generate monthly income.
BTCI, launched in October 2024, is the largest of the three, with over $1 billion in net assets as of Wednesday. XBCI, which launched in February, has about $111 million in net assets. NEHI, launched in December 2025, has over $77 million in net assets.
BTCI's yield comes with a trade-off
The fund yields roughly 27% using a covered-call strategy against bitcoin exchange-traded products, according to Bloomberg senior ETF analyst Eric Balchunas. Investors receive that yield but forfeit some upside when bitcoin rallies, he said.
BTCI charges a 0.99% expense ratio. Shares are down 42.55% over the past year, falling from a 52-week high of $65.87 to around $28.40, according to Bloomberg terminal data shared by Balchunas on X.
Deal explains a shelved Goldman filing
On April 14, Goldman registered the Goldman Sachs Bitcoin Premium Income ETF with the SEC, proposing a structurally similar covered-call product. Balchunas said the acquisition explains why Goldman never launched that filed fund; according to Balchunas: "Better to leapfrog BlackRock's $BITA vs me too?"
BlackRock launched its own bitcoin income ETF, BITA, on Nasdaq on June 16, about two months ahead of Goldman's filing. BITA targets a 15-25% annual yield and sells covered calls on 25-35% of its IBIT holdings, with a 0.65% expense ratio. The fund currently has about $59 million in net assets.
Goldman's ETF platform grows past $130 billion
The acquisition grants Goldman a $30 billion options-based ETF platform across 19 funds. Combined with its existing $40 billion in options-based ETF assets and the Innovator Capital Management acquisition announced in December, Goldman will control more than $130 billion in total ETF assets, enough to rank it eighth among active ETF managers globally. The derivative income ETF category has grown to roughly $180 billion in assets industry-wide, compounding at more than 70% annually since 2021, according to Morningstar data cited by Goldman.
NEOS co-founders Troy Cates and Garrett Paolella will join Goldman as partners after the deal closes.
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