Goldman Vaults Past BlackRock with $2.25B NEOS Deal
Goldman Sachs has agreed to acquire NEOS Investments for $2.25 billion in cash and equity, securing its position in the Bitcoin income ETF category by dwarfing BlackRock's competing product nearly 19 to one.
The acquisition includes the $1.1 billion Bitcoin High Income ETF (BTCI), a fund that has already crossed the $1 billion asset threshold in under two years from its October 2024 launch, and is one of the fastest-growing options-income platforms among financial advisors.
Eric Balchunas, Bloomberg Intelligence's senior ETF analyst, noted that Goldman likely acquired NEOS instead of building a competing fund to leapfrog BlackRock rather than enter as a late, smaller competitor. BTCI has delivered an approximately 27 percent distribution yield, one of the largest in the Bitcoin ETF universe.
Gary Gensler, a former chairman at Goldman Sachs, once said that the bank's growth is primarily driven by its ability to adapt and innovate, while also maintaining a strong focus on risk management. The NEOS acquisition shows Goldman's willingness to adapt and grow through strategic acquisitions.