Goldman Sachs has agreed to acquire Neos Investments for up to $2.25 billion. Subject to regulatory approval, the transaction is expected to close in the first quarter of 2027. Upon completion, Neos’s three yield-generating ETFs linked to Bitcoin and Ethereum will be integrated into Goldman Sachs Asset Management.
Include three crypto yield ETFs
These three products are the Neos Bitcoin High Income ETF (BTCI), the Boosted Bitcoin High Income ETF (XBCI), and the Ethereum High Income ETF (NEHI). Combined, these funds manage assets exceeding $1.1 billion, with BTCI being the largest, its latest net asset value surpassing $1 billion.
BTCI was launched in October 2024 to gain exposure primarily through bitcoin-related exchange-traded products, combined with options strategies to generate monthly income. It does not hold bitcoin directly. According to disclosures provided by Neos to shareholders, the fund allocated assets to bitcoin ETFs and utilized options instruments linked to the Cboe Bitcoin ETF Index.
XBCI was launched in February 2026, employing a more aggressive leveraged strategy. According to its prospectus, the fund aims to achieve approximately 150% exposure to BTCI’s underlying strategy, thereby amplifying volatility when bitcoin-related assets decline. NEHI, launched in December 2025, follows a structure similar to BTCI but targets ethereum-related assets.
Goldman Sachs' original product plans may be affected
This acquisition also gave Goldman Sachs immediate access to an existing line of Bitcoin income-generating ETFs, even before its own product was launched. In April of this year, Goldman Sachs submitted an application to the U.S. Securities and Exchange Commission to launch the Goldman Sachs Bitcoin Premium Income ETF.
According to the application documents at the time, the proposed fund plans to allocate at least 80% of its net assets to instruments providing exposure to Bitcoin, primarily spot Bitcoin ETFs, and to sell call options on a portion of its positions to generate premium income. The documents indicate that the option coverage ratio is intended to range between 40% and 100%, depending on market conditions.
Bloomberg senior ETF analyst Eric Balchunas said after the Neos transaction announcement that this acquisition might explain why Goldman Sachs' product, filed in April, has yet to be launched. Goldman Sachs has not yet indicated whether it will withdraw, amend, or proceed with its original bitcoin income-focused ETF application.
Competition intensifies among Bitcoin yield-bearing ETFs
Goldman Sachs’s acquisition of Neos comes amid intensifying competition in the Bitcoin yield ETF market. BlackRock entered this space in June with the launch of BITA. Relevant analysis shows that BITA plans to sell call options on approximately 25% to 35% of its net asset value each month, with an annual yield target in the range of 15% to 25%.
However, a common characteristic of these products is that, in exchange for option income, they sacrifice part of the upside potential when Bitcoin rises significantly. As of Wednesday, BITA’s net asset value was approximately $59 million, significantly lower than BTCI’s scale of over $1 billion.
Neos, founded in 2022, currently manages over $30 billion in assets and offers 19 options-based income-focused ETFs covering U.S. equity indices, fixed income, Bitcoin, Ethereum, and gold. Goldman Sachs stated that, including the acquisition of Innovator Capital Management completed in April this year, the combined global ETF platforms of Goldman Sachs, Innovator, and Neos will manage over $130 billion in assets as of the end of June, with approximately $80 billion in actively managed ETFs.
According to Goldman Sachs, after the transaction, the company will rise to the eighth-largest player in the active ETF market globally. Neos co-founders Troy Cates and Garrett Paolella are also expected to join Goldman Sachs Asset Management as partners following closing.