Goldman Sachs Pays Up to $2.25B for NEOS and Its Crypto-Income ETFs

Goldman Sachs has agreed to pay up to $2.25 billion for NEOS Investments, in what is being seen as a strategic move to tap into the growing market for crypto-income ETFs.

The deal includes three specific products: the Neos Bitcoin High Income ETF (BTCI), the Boosted Bitcoin High Income ETF (XBCI) and the Ethereum High Income ETF (NEHI), each of which will be managed by Goldman Sachs Asset Management.

What's notable is that neither BTCI nor XBCI actually hold any Bitcoin. Instead, they rely on derivatives to generate income from crypto-linked exposure.

This means that the headline yields for these funds are driven mostly by premium collected from selling options, rather than being a direct reflection of Bitcoin's price performance.