Goldman Sachs makes US$2.25 billion push into crypto ETFs

InvestorDaily

Goldman Sachs is making a major move into crypto and is paying up to US$2.25 billion to do so, opting to acquire rather than start a business from scratch. The Wall Street giant has agreed to acquire NEOS Investments, an options-based ETF manager with roughly US$30 billion in assets, bringing three Bitcoin- and Ethereum-linked income ETFs under Goldman Sachs Asset Management. The deal gives Goldman an immediate presence in a fast-growing corner of the crypto market instead of building a crypto ETF business from scratch.

NEOS’ lineup includes the Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI) and Ethereum High Income ETF (NEHI). BTCI, the flagship Bitcoin fund, has more than US$1 billion in assets. The acquisition is expected to close in the first quarter of 2027, subject to regulatory approval and other customary conditions. Goldman’s move is notable as NEOS isn’t simply offering investors traditional Bitcoin exposure. Its crypto funds use options strategies designed to generate income from digital assets. BTCI, for example, uses Bitcoin-related exposure and call options to produce monthly distributions, potentially giving investors income while sacrificing some upside if Bitcoin rallies sharply.

The rest of this article can be found at investordaily.com.au.