Goldman Sachs Buys NEOS and Takes Big Step into Crypto

Goldman Sachs has made a significant move into the cryptocurrency space by acquiring NEOS Investments and its Bitcoin High Income ETF (BTCI) worth $1.1 billion.

The deal, valued at $2.25 billion, gives Goldman Sachs a prominent position in the crypto ETF industry without having to launch a product of its own. By acquiring an existing ETF, the bank avoids delays with the US Securities and Exchange Commission (SEC), where it had filed an application for its native ETF four months ago.

The NEOS Bitcoin ETF is a 'covered-call' synthetic ETF that tracks the digital asset's price and sells options contracts to generate consistent yield. It charges investors a fee of 0.99%, matching rivals such as Roundhill but facing fierce competition from BlackRock's 0.65% fee.

In related news, the Swiss National Bank (SNB) has revealed a multi-million-dollar position in the Bitcoin treasury firm Strategy through its ownership of 736,300 shares of MSTR, worth about $72 million. This move is ironic given the SNB's previous stance against Bitcoin serving as an official sovereign reserve asset due to its volatility.