Goldman Sachs leaps into bitcoin income ETFs with $2.25 billion NEOS buyout

Goldman Sachs has agreed to acquire ETF manager NEOS Investments in a deal valued at up to $2.25 billion. This acquisition will expand Goldman's ETF business by incorporating NEOS's $30 billion portfolio of Bitcoin and Ether-linked income funds. These funds include the Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI), and Ethereum High Income ETF (NEHI).

The crypto-focused funds employ options-based strategies aimed at generating monthly income while maintaining exposure to Bitcoin (BTC) or Ether (ETH). The acquisition is anticipated to close during the first quarter of 2027, contingent on regulatory approval. Upon completion, NEOS co-founders Troy Cates and Garrett Paolella, along with their entire team, will join Goldman Sachs Asset Management.

This acquisition, combined with Goldman's recent purchase of Innovator Capital Management, will elevate the bank's global ETF platform's assets under management to approximately $130 billion, positioning it as the eighth-largest active ETF manager. Analyst Eric Balchunas of Bloomberg described the deal as a "semi-shock," highlighting NEOS's swift growth since its inception in 2022 and the back-to-back acquisitions by Goldman of both NEOS and Innovator.

This transaction follows Goldman's recent reduction of its disclosed exposure to crypto ETFs, including exits from XRP- and Solana-linked funds and trimming positions in Bitcoin and Ether ETFs. Despite these moves, Goldman still holds over $700 million worth of Bitcoin ETF holdings as of the end of the first quarter.