Goldman Sachs Buys Crypto Income ETFs for $2.25 Billion

Goldman Sachs is set to expand its asset management business through a deal to acquire Neos Investments, a firm that specializes in crypto income ETFs. The acquisition, worth up to $2.25 billion, will bring three of Neos' funds under Goldman's umbrella: the Bitcoin High Income ETF (BTCI), the Boosted Bitcoin High Income ETF (XBCI), and the Ethereum High Income ETF (NEHI). These funds do not directly invest in bitcoin or ether but use exchange-traded products linked to the assets and options strategies to generate monthly income.

As part of the deal, Neos co-founders Troy Cates and Garrett Paolella will join Goldman Sachs Asset Management as partners. The transaction is expected to close in the first quarter of 2027, subject to regulatory approval and other customary conditions.

The addition of these funds follows a trend of growing demand for active ETFs, with derivative income ETFs reaching $180 billion in assets industry-wide since 2021, according to Goldman. The acquisition also marks a significant expansion of Goldman's presence in the crypto market.