Goldman Sachs Acquires NEOS Investments, Expands Crypto Income ETF Portfolio

Goldman Sachs is set to acquire NEOS Investments for up to $2.25 billion. This acquisition integrates approximately $30 billion in options-based income exchange-traded funds (ETFs) into Goldman Sachs Asset Management. It includes a significant Bitcoin covered-call fund, immediately establishing Goldman Sachs in the crypto income ETF sector.

The transaction is a cash-and-equity deal, contingent on performance and service benchmarks. It is expected to close in the first quarter of 2027, pending regulatory approvals.

NEOS Investments' flagship Bitcoin covered-call fund, BTCI, has accumulated about $1 billion in assets since its inception. This fund generates monthly income by selling options against Bitcoin exposure, offering investors yield while limiting some upside potential. NEOS also manages a comparable Ethereum product, providing Goldman Sachs with immediate scale in this specialized market.

Goldman Sachs had previously filed for its own Bitcoin Premium ETF in April. This ETF was designed to generate income by writing options linked to spot Bitcoin ETFs. The NEOS acquisition offers a more rapid entry into the market compared to launching a new product and waiting for it to gain traction.

The purchase aligns with the rapid expansion of derivative-income ETFs. These funds have grown to approximately $180 billion in assets with a compound annual growth rate exceeding 70% since 2021. Crypto assets are increasingly forming a notable portion of this category as issuers develop yield-bearing structures for Bitcoin and Ethereum.

Goldman Sachs Chairman and CEO David Solomon characterized the deal in terms of NEOS's income and outcome strategies. NEOS co-founders Garrett Paolella and Troy Cates are expected to join Goldman Sachs Asset Management as partners following the transaction's completion.