Key facts
- Goldman Sachs will acquire NEOS Investments for up to $2.25 billion.
- The acquisition includes NEOS's Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI), and Ethereum High Income ETF (NEHI).
- NEOS manages approximately $30 billion across 19 ETFs that utilize options strategies for monthly income generation.
- The deal will expand Goldman Sachs Asset Management's active ETF business to about $80 billion, making it the eighth-largest active ETF manager.
- The acquired Bitcoin ETFs use derivatives to generate income, rather than holding cryptocurrency directly.
Goldman Sachs has agreed to acquire NEOS Investments in a deal valued at up to $2.25 billion, marking a significant expansion into the Bitcoin and Ether-linked income ETF market. The acquisition, announced Wednesday, will bring NEOS's suite of products, including the Neos Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI), and Ethereum High Income ETF (NEHI), under the umbrella of Goldman Sachs Asset Management.
According to NEOS's disclosures, the Bitcoin ETFs involved in the acquisition do not directly hold cryptocurrency. Instead, they utilize derivatives, primarily through selling options premium, to generate income linked to crypto exposure. This strategy allows for high headline yields that are not necessarily tied to the direct price performance of Bitcoin.
NEOS currently manages approximately $30 billion in assets across 19 ETFs that employ options strategies to produce monthly income. Goldman Sachs CEO David Solomon described NEOS's approach as "highly complementary" to the bank's existing capabilities in buffer, managed-outcome, and income strategies. NEOS co-founders Garrett Paolella and Troy Cates are set to join Goldman Sachs Asset Management as partners.
This acquisition is expected to significantly boost Goldman Sachs Asset Management's active ETF business, pushing its total to approximately $80 billion. This would position it as the eighth-largest active ETF manager, according to Morningstar, within a larger $130 billion ETF platform. The move follows Goldman's prior acquisition of Innovator Capital Management, further consolidating its focus on derivative-income and outcome-based strategies.
The deal, which is structured as cash and equity contingent on performance and service milestones, is anticipated to close in the first quarter of 2027, subject to regulatory approval. This strategic move provides Goldman Sachs with an established presence in the crypto-income ETF sector, aligning with growing institutional interest in digital-asset-adjacent, income-generating financial products.