Goldman Sachs to Buy NEOS Investments for Up to $2.25B, Aiming for a Faster Push Into Bitcoin Yield ETFs

Goldman Sachs has disclosed plans to acquire ETF manager NEOS Investments for up to $2.25 billion, with the deal expected to close in the first quarter of 2027 pending regulatory approval, Odaily Planet Daily reported. Market participants see the transaction as a shortcut for Goldman to scale quickly in the Bitcoin yield ETF segment, a move some believe could help it gain an edge over BlackRock in Wall Street's race to build crypto-related asset franchises. NEOS oversees about $30 billion in assets. Its flagship product is the BTCI (NEOS Bitcoin High Income ETF), with roughly $1.1 billion in assets under management. The fund seeks to generate monthly income by holding Bitcoin-related ETFs and selling call options, and it is currently posting a distribution yield of about 27%. Bloomberg ETF analyst Eric Balchunas said Goldman's purchase of NEOS to obtain BTCI effectively skips the slower route of launching a comparable product from scratch, positioning it ahead of BlackRock's previously launched Bitcoin income ETF, BITA. The deal is also being interpreted as a sign that Wall Street's crypto playbook is evolving. Some industry observers describe spot Bitcoin ETFs as the "first phase," and expect the next phase of competition to center on actively managed strategies, including Bitcoin-based yield enhancement and options overlays. BTCI's headline yield, however, comes with trade-offs. The fund does not hold Bitcoin directly; it sells call options tied to Bitcoin ETFs to generate income, a structure that can cap upside participation during sharp rallies. Analysts also note BTCI's net asset value fell about 43% over the past year, and that a portion of the high distribution rate may reflect returns of capital. BlackRock has rolled out a competing product, BITA, with current assets under management of about $590 million. That remains well below BTCI's scale, which the report cites at roughly $11 billion. Investors are now watching whether Goldman, once the acquisition closes, keeps BTCI's existing structure intact and uses its platform to widen its lead in Bitcoin yield products. (Forbes)