Goldman Sachs is set to expand its cryptocurrency ETF business through the acquisition of NEOS Investments, agreeing to pay up to $2.25 billion for the fast-growing asset manager and its approximately $30 billion portfolio of options-based exchange-traded funds. The acquisition will give Goldman control of three crypto-focused products: the NEOS Bitcoin High Income ETF (BTCI), NEOS Ethereum High Income ETF (ETCI) and NEOS Bitcoin High Income ETF for Professional Investors (BTCY).
The transaction, announced August 12, consists of cash and equity, with part of the consideration dependent on performance targets. It is expected to close in the first quarter of 2027, subject to regulatory approval. The deal does not mean Goldman is acquiring conventional spot Bitcoin and Ethereum ETFs. NEOS’s crypto funds are options-income products, designed to combine cryptocurrency exposure with options strategies that generate distributions. That distinction makes the acquisition particularly interesting: Goldman is not simply adding passive crypto exposure. It is buying an established business designed to turn Bitcoin and Ethereum volatility into income.
Bitcoin Income ETF Already Holds More Than $1 Billion
NEOS’s flagship crypto product, BTCI, has accumulated approximately $1.1 billion in assets, according to CoinDesk, making it a meaningful part of the rapidly expanding crypto ETF ecosystem. BTCI uses Bitcoin-linked exposure alongside an options strategy intended to generate monthly income. Bloomberg senior ETF analyst Eric Balchunas estimated the product’s yield at roughly 27%, although distributions can fluctuate and should not be interpreted as a guaranteed investment return. The structure gives investors a different proposition from products such as BlackRock’s IBIT. Spot Bitcoin ETFs are primarily designed to track BTC’s price. Options-income products sacrifice some potential upside in exchange for generating cash distributions from option premiums.
NEOS applies a similar model to Ethereum through ETCI. For Goldman, acquiring these products provides immediate entry into a segment where crypto increasingly overlaps with one of Wall Street’s fastest-growing businesses: actively managed ETFs.
Goldman Builds a $130 Billion ETF Platform
Crypto is only one component of the transaction. NEOS manages approximately $30 billion across 19 ETFs, specializing in options-based strategies designed to generate income or manage downside risk. Goldman already manages around $40 billion in income and outcome-oriented options ETFs. Following the acquisition, Goldman Sachs Asset Management expects to have approximately $80 billion in active ETFs and a broader global ETF platform exceeding $130 billion. That would position Goldman among the eight largest active ETF providers based on assets as of June 30. The NEOS purchase follows Goldman’s acquisition of Innovator Capital Management, another specialist ETF manager, for approximately $2 billion earlier this year. The strategy reflects a wider shift in asset management. Investors have increasingly moved toward ETFs offering active strategies, defined outcomes and income generation rather than relying exclusively on conventional passive index products.
The crypto products add another dimension. Bitcoin and Ethereum are unusually volatile assets, creating substantial option premiums that can support income-focused strategies when market conditions are favorable. Goldman’s acquisition therefore represents more than another institutional endorsement of cryptocurrency. It places Bitcoin and Ethereum products directly inside an increasingly important part of the bank’s asset-management growth strategy. NEOS founders Troy Cates and Garrett Paolella are expected to join Goldman Sachs as partners following completion of the transaction. If regulators approve the deal, Goldman will not need to build its crypto income ETF franchise from scratch. It will inherit established Bitcoin and Ethereum funds, an existing investor base and billions of dollars already deployed across NEOS’s wider ETF platform. The result is another step in crypto’s integration with mainstream asset management: Bitcoin and Ethereum are no longer merely assets Wall Street offers through passive trackers. They are increasingly becoming building blocks for the same sophisticated income strategies traditionally applied to equities and bonds.
