Goldman Sachs Buys BTCI Issuer for $2.25 Billion

Goldman Sachs has agreed to acquire NEOS Investments for $2.25 billion, the issuer of the popular Bitcoin income ETF BTCI. This raises questions about whether this fund still belongs in its investors' portfolios.

BTCI pairs Bitcoin-linked exposure with an options overlay to generate a monthly cash flow. The fund's payouts have been variable, ranging from $1.5718 in January 2025 to $0.6458 in July 2026. This is due to the call-writing strategy used by BTCI, which limits participation in Bitcoin's upside.

For investors seeking a simpler structure with uncapped exposure, the iShares Bitcoin Trust (IBIT) may be a better option. IBIT holds spot Bitcoin directly and charges only 0.25% in fees. This means that its returns are not capped like BTCI, providing greater participation in Bitcoin's upside.