Goldman Sachs is paying $2.25 billion to get into Bitcoin income game

Goldman Sachs is acquiring NEOS Investments, the steadfast down a fashionable Bitcoin income fund, successful a cash-and-equity woody valued astatine up to $2.25 billion, its latest propulsion deeper into the fast-growing marketplace for options-based ETFs.

Goldman Sachs, the 156-year-old Wall Street bank, announced the statement connected Wednesday, August 12. NEOS, founded successful 2022, manages astir $30 cardinal crossed 19 options-based income ETFs, which usage options strategies to make regular payouts for investors. The woody is taxable to show targets and is expected to adjacent successful the archetypal 4th of 2027, pending regulatory approval.

Related: Goldman Sachs dumps Solana, XRP for astonishing caller investment

The Bitcoin money astatine the halfway

The acquisition hands Goldman NEOS's BTCI, a astir $1.1 cardinal Bitcoin income money yielding astir 27%, according to Bloomberg elder ETF expert Eric Balchunas. Rather than holding Bitcoin directly, BTCI holds spot Bitcoin exchange-traded products and sells telephone options against them, contracts that make monthly income but headdress however overmuch investors summation erstwhile Bitcoin rallies, Balchunas said.

Notably, the woody echoes a merchandise Goldman tried to physique itself. In April, the slope filed with regulators to motorboat its ain Bitcoin covered-call ETF. Balchunas suggested the NEOS acquisition explains wherefore Goldman ne'er launched it, buying an established person alternatively than starting from scratch.

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BTCI's precocious output comes with trade-offs. The money charges a 0.99% interest and, according to NEOS's show data, mislaid astir 41.7% implicit the twelvemonth ending July 31, with its stock terms falling from a 52-week precocious of $65.87 to astir $28.40. NEOS besides notes that immoderate distributions person been classified arsenic a instrumentality of investors' ain superior alternatively than concern income.

Part of a bigger ETF play

For Goldman, BTCI is 1 portion of a larger bet. 

The NEOS deal, combined with its existing options-based ETF assets and its earlier acquisition of Innovator Capital Management, would springiness Goldman much than $130 cardinal successful ETF assets, capable to fertile it eighth among progressive ETF managers globally. 

Industry-wide, derivative income ETFs person grown to astir $180 billion, compounding astatine much than 70% a twelvemonth since 2021, Goldman Sachs said successful its announcement, citing Morningstar.

Related: Goldman Sachs files for archetypal Bitcoin ETF

This communicative was primitively published by TheStreet connected Aug 13, 2026, wherever it archetypal appeared successful the Business News section. Add TheStreet arsenic a Preferred Source by clicking here.