Goldman Sachs Lands $2.25 Billion Deal for NEOS Investments, Gaining Control of BTCI

Goldman Sachs has agreed to acquire NEOS Investments for up to $2.25 billion, marking a significant expansion of its ETF platform. The deal includes 19 options-based income ETFs and the $1.10 billion Bitcoin High Income ETF (BTCI), which provides investors with Bitcoin-linked exposure without directly owning the cryptocurrency.

BTCI invests through Bitcoin exchange-traded products and uses an options strategy to generate monthly income by writing calls, allowing investors to participate in Bitcoin price movements while giving up some potential upside in exchange for option premiums. The fund has a 26.73% distribution rate and a 1.62% 30-day SEC yield as of July 31.

With the acquisition, Goldman Sachs' ETF platform would lift to around $130 billion, making it the eighth-largest active ETF provider based on assets as of June 30. The wider derivative-income ETF market has expanded to about $180 billion, with assets growing at an annualized rate of more than 70% since 2021.