- The investment bank will buy the firm for up to $2.25 billion in cash and equity.
- It gives Goldman the $1.1 billion Bitcoin income ETF BTCI and a $30 billion options platform.
Goldman Sachs has chosen acquisition over launch to enter the bitcoin income ETF niche. The bank agreed to buy NEOS Investments, the manager behind the $1.1 billion BTCI fund. The deal is worth up to $2.25 billion.
According to the announcement, Goldman will pay for NEOS in cash and equity, with the total valuation reaching up to $2.25 billion if performance targets are met. The bank expects the transaction to close in the first quarter of 2027, subject to regulatory approval. After closing, NEOS co-founders Troy Cates and Garrett Paolella will join Goldman as partners.
The acquisition hands Goldman the BTCI fund, which sells call options against spot bitcoin exchange-traded products to generate monthly distributions.
The fund launched in October 2024 and crossed $1 billion in assets in under two years. Its expense ratio is reportedly 0.99%.
Goldman Sachs Buys NEOS to Jump into Bitcoin Income ETFs
“As investor demand for active ETFs grows, NEOS’ disciplined investment approach is highly complementary to our capabilities across buffer, managed outcome and income strategies. Together, we will give investors a diverse toolkit for different market environments,” commented David Solomon, Chairman and CEO of Goldman Sachs.
“NEOS’ innovative ETF solutions and intuitive financial education programs have helped them build a strong market presence across a diverse investor base and this acquisition is an excellent strategic and cultural fit.”
Goldman had filed in April to launch a structurally similar covered-call bitcoin ETF. BlackRock listed BITA on Nasdaq on June 16, about two months before Goldman’s filing. Beyond BTCI, the deal adds roughly $30 billion in options-driven ETF assets across 19 funds.
Combined with Goldman’s existing $40 billion in options-based ETF assets and the Innovator Capital Management purchase announced in December, the bank now oversees more than $130 billion in ETF assets. That scale ranks Goldman eighth among active ETF managers globally, the bank said.