Goldman Sachs and SNB Signal Growing Institutional Interest in Crypto

Goldman Sachs, one of America's largest banking institutions, has made a significant move into the world of cryptocurrency. The company recently acquired NEOS Investments and its Bitcoin High Income ETF (BTCI) for $1.1 billion as part of a larger deal worth $2.25 billion. This acquisition gives Goldman Sachs a prominent position in the crypto ETF industry without having to launch a product of its own, bypassing delays with the US Securities and Exchange Commission.

The NEOS Bitcoin ETF uses a 'covered-call' synthetic strategy to track the digital asset's price while generating consistent yield through option contracts. This approach charges investors a fee of 0.99%, which is comparable to rivals like Roundhill but faces stiff competition from BlackRock's 0.65% fee.

In related news, the Swiss National Bank (SNB) has also revealed a significant exposure to Bitcoin through its ownership of 736,300 shares in MSTR, worth approximately $72 million. This move may seem counterintuitive given the SNB's previous stance against Bitcoin due to its volatility and the prohibition on direct crypto exposure for central banks.