Goldman Sachs Acquires NEOS Investments for $2.25 Billion, Gaining Access to Crypto-Native Yields

Goldman Sachs is acquiring NEOS Investments for up to $2.25 billion in a cash-and-stock deal. The firm manages 19 options-based income ETFs with total assets of $30 billion.

The acquisition includes BTCI, one of NEOS's many options income ETFs that holds spot Bitcoin products and sells call options against its positions. With over $1.11 billion in assets under management, the fund currently has a 0.98% management fee, covering operating costs.

BTCI distributes income to holders monthly, thanks to Bitcoin's high volatility generating substantial premiums. The current monthly dividend is $7.75 per share, equivalent to an annualized yield of 27%. However, holding BTCI exposes investors to losses from price crashes while missing out on peak bull market gains.

Goldman Sachs had filed an application four months ago to build a similar product in-house but ultimately decided to acquire the mature and proven product instead. The acquisition brings Goldman's total volatility-selling assets to $61 billion, with derivatives income ETFs totaling approximately $180 billion in assets growing at over 70% annually since 2021.