Goldman Sachs Acquires NEOS Investments for $2.25B Crypto Push

Goldman Sachs has agreed to acquire NEOS Investments in a $2.25 billion deal, expanding its portfolio with Bitcoin-related products. The acquisition will bring the Neos Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI) and Ethereum High Income ETF (NEHI) under Goldman Sachs Asset Management. This move follows Goldman's earlier acquisition of Innovator Capital Management and marks a significant entry into the crypto-income ETF market, particularly in derivative-income strategies.

The deal will be completed through cash and equity, contingent on performance and service milestones. NEOS co-founders Garrett Paolella and Troy Cates will join Goldman Sachs Asset Management as partners. The acquisition adds $30 billion to Goldman's existing active ETF business of $40 billion, making it the eighth-largest active ETF manager according to Morningstar.

The Bitcoin ETFs in question use derivatives to generate income from crypto-linked exposure rather than owning the underlying coins, resulting in high headline yields primarily from selling options premium. This acquisition effectively hands Goldman Sachs a foothold in crypto-income ETFs amidst growing institutional appetite for digital-asset-adjacent products.