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Goldman Sachs Acquires NEOS Investments for $2.25 Billion, Gaining Bitcoin Income ETF Platform
Goldman Sachs agreed to acquire NEOS Investments for up to $2.25 billion in a cash-and-equity deal, gaining BTCI, a $1.1 billion bitcoin synthetic income ETF that yields roughly 27% through covered-call strategies. The deal positions Goldman as an eighth-ranked global active ETF manager with more than $130 billion in total ETF assets, directly challenging BlackRock's newer BITA fund.
Goldman Sachs has agreed to acquire NEOS Investments for up to $2.25 billion in a cash-and-equity deal, according to CoinDesk reporting. The acquisition gives Goldman control of BTCI, a $1.1 billion bitcoin synthetic ETF that yields roughly 27% annually by holding spot bitcoin ETPs and selling covered-call options against those positions to generate monthly distributions.
The deal consolidates Goldman's position in the fast-growing bitcoin income ETF category at a moment when that market is compounding at more than 70% annually. The derivative income ETF category has grown to roughly $180 billion in assets industry-wide since 2021, per CoinDesk. Goldman's own Bitcoin Premium Income ETF filing on April 14 had proposed a structurally similar covered-call product but was abandoned in favor of the NEOS acquisition.
BTCI does not directly hold bitcoin. Instead, it holds spot bitcoin ETPs and sells call options against those positions to fund monthly distributions. The fund charges a 0.99% expense ratio, according to CoinDesk. BTCI launched in October 2024 and crossed $1 billion in assets in under two years, but has declined from a 52-week high of $65.87 to around $28.40, representing a decline of roughly 43% over the past year, per CoinDesk.
The acquisition gives Goldman a $30 billion options-based ETF platform across 19 funds, according to CoinDesk. As of June 30, 2026, Goldman Sachs Asset Management, Innovator from Goldman Sachs Asset Management, and NEOS together manage more than $130 billion in ETF assets under supervision. The more than $130 billion in total ETF assets will rank Goldman as the eighth-largest active ETF manager globally, per CoinDesk.
The timing places Goldman in direct competition with BlackRock, which released its own bitcoin income ETF, BITA, on Nasdaq on June 16, 2026. BlackRock's BITA targets a 15-25% annual yield and sells covered calls on 25-35% of its IBIT holdings, according to CoinDesk. BITA charges a 0.65% expense ratio, undercutting BTCI by 34 basis points. Both funds use covered-call strategies but differ in yield targets and fee structures. According to CoinDesk's reporting, BTCI's distributions may in part represent a return of capital rather than net investment income, per the fund's SEC prospectus, potentially misleading income investors about the true nature of yield.
NEOS co-founders Troy Cates and Garrett Paolella will join Goldman as partners after closing. The deal is subject to performance targets and is expected to close during the first quarter of 2027 pending regulatory approval, per CoinDesk.
Goldman is paying up to $2.25 billion for NEOS Investments to acquire BTCI and its $1.1 billion bitcoin income ETF platform, expecting the deal to close in early 2027 pending regulatory approval.
Watch for regulatory approval signals and whether Goldman reprices BTCI's 0.99% expense ratio post-acquisition to compete with BITA's 0.65% rate. The key question is whether Goldman's acquisition will stabilize BTCI's asset base after its 43% decline or whether the fund faces further redemptions as investors compare it to BlackRock's lower-cost alternative. If BTCI's share price continues to fall or if regulatory approval is delayed beyond Q1 2027, the acquisition thesis will face headwinds.
And that's the way it is.
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