Goldman Sachs Is Buying Its Way Into Bitcoin Income ETFs With $2.25 Billion NEOS Deal

By Lidia Yadlos

Wall Street's race to turn Bitcoin into an income-producing asset just took another major step forward.

Goldman Sachs has agreed to acquire ETF provider NEOS Investments in a deal worth up to $2.25 billion, adding one of the industry's largest Bitcoin income funds to its growing asset management business while significantly expanding its position in the fast-growing market for options-based ETFs. The transaction is expected to close in the first quarter of 2027, subject to regulatory approval.

The acquisition brings Goldman control of 19 actively managed ETFs overseeing roughly $30 billion in assets, including the NEOS Bitcoin High Income ETF (BTCI), which manages approximately $1.1 billion. Combined with its recent acquisition of Innovator Capital Management, Goldman Sachs Asset Management's ETF platform will grow to around $130 billion, making it the world's eighth-largest active ETF provider.

Skipping the Launch Queue

The Bitcoin fund may be one of the most strategic parts of the acquisition.

Earlier this year, Goldman filed plans for its own Bitcoin Premium Income ETF, designed to generate yield by selling covered call options against Bitcoin exchange-traded products. That fund has yet to launch.

By acquiring NEOS instead, Goldman immediately gains BTCI, one of the largest Bitcoin income ETFs already on the market.

According to Bloomberg ETF analyst Eric Balchunas, BTCI manages roughly 19 times more assets than BlackRock's recently launched iShares Bitcoin Premium Income ETF (BITA), allowing Goldman to leapfrog one of the world's biggest asset managers in one of crypto's newest investment categories.

Why Bitcoin Yield Is Becoming Wall Street's Next Battleground

Spot Bitcoin ETFs brought digital assets into traditional portfolios. The next competition is generating income from those holdings.

Funds such as BTCI use covered call strategies, collecting option premiums while providing investors with Bitcoin-linked exposure. The trade-off is that investors receive regular income but give up part of Bitcoin's upside during strong rallies.

As of late July, BTCI reported a distribution rate above 26%, although its regulated 30-day SEC yield remained significantly lower because much of the distribution comes from options strategies rather than traditional investment income.

The strategy has become increasingly popular as investors look for income without abandoning exposure to volatile growth assets.

A Rapidly Expanding ETF Market

Goldman's acquisition is also a bet on one of the fastest-growing segments of the ETF industry.

The market for derivative-income ETFs has expanded to around $180 billion, growing at an annualized rate of roughly 70% since 2021, according to Morningstar data cited by Goldman Sachs.

Meanwhile, the broader U.S. ETF market continues to hit new records, with more than 900 ETFs launched during 2026 as asset managers compete to introduce specialized investment strategies.

Industry observers say options-based income funds have become one of Wall Street's hottest products, particularly among financial advisers seeking investments that can generate cash flow while limiting downside risk.

For Goldman Sachs, the acquisition is about more than adding another ETF business. It provides an established platform, experienced management team and immediate exposure to one of crypto's fastest-growing investment categories without waiting to build market share from scratch.

Published on Blockster

Goldman Sachs Is Buying Its Way Into Bitcoin Income ETFs With $2.25 Billion NEOS Deal