Goldman Sachs Buys Volatility ETFs in $2.25 Billion Deal

Goldman Sachs is expanding its options-related ETFs by acquiring NEOS Investments for approximately $2.25 billion in a cash-and-stock deal.

NEOS manages 19 options-based yield ETFs, including BTCI, which holds Bitcoin spot products and sells call options against its positions to generate yields.

The fund's trading logic is straightforward: give up excess bull-market returns in exchange for upfront cash flow to survive bear markets. This year, the NAV of BTCI has fallen by 25.4%, with a drawdown of 40.9% over the past 12 months.

Goldman Sachs' acquisition brings its total AUM for this investment strategy to $61 billion, and its options-related ETFs now manage $80 billion in assets, ranking it as the eighth-largest player globally in this sector.