Goldman Sachs Buys into Volatility, Sees Bitcoin as a Cash Flow Business

Goldman Sachs has agreed to purchase NEOS Investments for up to $22.5 billion, adding 19 option-based ETFs with a total size of $300 billion to its portfolio.

The strategy of selling call options on assets is not new in traditional finance and dates back to the creation of options themselves: selling call options allows investors who do not want to wait for uncertain future gains to receive cash immediately. They sell the right to buy an asset at a predetermined price, allowing others to buy it in the future while collecting a premium upfront.

This strategy is why public utility stocks can only generate meager returns using this strategy, but Bitcoin can produce high returns.