Updated
Updated · Forbes · Aug 12
Goldman Buys NEOS for $2.25 Billion, Gaining $1.1 Billion Bitcoin Income ETF
Updated
Updated · Forbes · Aug 12

Goldman Buys NEOS for $2.25 Billion, Gaining $1.1 Billion Bitcoin Income ETF

3 articles · Updated · Forbes · Aug 12

Summary

  • $2.25 billion gives Goldman Sachs control of NEOS and BTCI, a $1.1 billion bitcoin income ETF, adding a crypto-linked product the bank did not highlight in its own deal announcement.
  • BTCI yields about 27% by selling call options against bitcoin ETPs rather than holding bitcoin directly, turning potential upside into monthly income while bitcoin trades near $63,000, roughly half its October peak.
  • That structure has drawn criticism: BTCI's NAV is down 25.54% year to date, about 92% of July's payout was estimated return of capital, and some market watchers say the yield comes at the cost of upside.
  • The acquisition also gives Goldman a faster route into a crowded bitcoin-income ETF race, where BlackRock's newer BITA holds about $59 million versus BTCI's $1.1 billion.
  • More broadly, the deal deepens Goldman's push into active ETFs, a category Morningstar says has grown to roughly $180 billion and compounded more than 70% annually since 2021.

Insights

Will Goldman's massive $2.25 billion buyout of Neos alter the monthly payouts for current high-income ETF investors?
Why is Goldman Sachs suddenly spending billions to dominate the complex, high-yield options ETF market before 2027?
Could the hidden risks of active buffer ETFs backfire on investors seeking a safe 12% yield during market turbulence?