Goldman Sachs is acquiring NEOS Investments, which manages investment products linked to Bitcoin and Ethereum, in a deal worth up to $2.25 billion. Once completed, the transaction will bring three crypto income ETFs onto the Wall Street giant’s asset management platform.
According to Goldman Sachs’ August 12 announcement, NEOS manages $30 billion across 19 ETFs. The acquisition will be financed with cash and equity, with the final consideration subject to certain performance and service commitments.
The transaction is expected to close in the first quarter of 2027. It remains subject to regulatory approval and other customary closing conditions.
NEOS manages three crypto income ETFs
The acquisition includes three ETFs that provide indirect exposure to Bitcoin and Ethereum prices. According to NEOS’ latest fund data, these products manage approximately $1.29 billion in combined assets.
The NEOS Bitcoin High Income ETF (BTCI) is the group’s largest crypto product, with approximately $1.10 billion in net assets. Instead of investing directly in Bitcoin, the fund gains exposure through spot Bitcoin ETFs and other Bitcoin-linked exchange-traded products.
The NEOS Boosted Bitcoin High Income ETF (XBCI) manages approximately $111.3 million. The fund uses Bitcoin ETPs and options to target notional exposure equal to roughly 150% of the BTCI strategy.
On the Ethereum side, the package includes the NEOS Ethereum High Income ETF. Trading under the ticker NEHI, the fund has approximately $79.2 million in net assets.
NEHI does not hold Ether directly. It gains indirect price exposure through Ethereum ETPs and related options, meaning the acquisition will not make Goldman Sachs a direct holder of Bitcoin or Ethereum.
Funds target income from Bitcoin volatility
NEOS’ crypto ETFs use options strategies to pursue high monthly distributions. The funds seek to generate premium income by selling call options on Bitcoin- and Ethereum-linked products.
As of the end of July, BTCI had an annualized distribution rate of 26.73%. The corresponding rate stood at 40.84% for XBCI and 32.93% for NEHI.
However, distribution rates do not represent the funds’ total returns. NEOS states that payments may include option premiums, dividends, capital gains, interest income and return of capital.
High distributions have also failed to fully offset declines in crypto prices. Based on market price, BTCI posted a one-year total return of negative 40.95% as of June 30.
XBCI, which began trading in February 2026, had lost 29.38% since its launch by the same date. NEHI’s market-price total return since inception stood at negative 42.40%.
These figures show that options income does not fully protect investors against sharp declines in Bitcoin and Ethereum prices. Selling call options can also limit the funds’ participation in crypto price gains during rising markets.
Goldman Sachs’ ETF platform will reach $130 billion
The NEOS acquisition will strengthen Goldman Sachs’ position in the rapidly expanding active ETF market. The addition of NEOS and the previously acquired Innovator Capital Management will bring the bank’s active ETF assets to $80 billion.
Goldman Sachs’ global ETF platform will grow to a combined $130 billion. Once the transaction closes, the company will rank among the eight largest active ETF managers in the United States.
According to Goldman Sachs, ETFs that use derivatives to generate income now manage approximately $180 billion. The category has recorded a compound annual growth rate of more than 70% since 2021.
NEOS co-founders Troy Cates and Garrett Paolella will join Goldman Sachs Asset Management as partners after the acquisition closes. NEOS’ existing employees are also expected to move to Goldman Sachs.
Goldman Sachs expands its crypto ETF plans
Goldman Sachs filed with the SEC in April for its first crypto ETF, designed to provide exposure to Bitcoin prices while generating income from options. The NEOS acquisition will give the bank three existing products that use similar strategies and are already trading.
The crypto funds account for approximately 4.3% of NEOS’ total $30 billion in assets. The broader active ETF and options-income markets remain the primary focus of the acquisition, although the Bitcoin and Ethereum products are among its most notable components.
Once the transaction closes, Goldman Sachs will bring income ETFs linked to Bitcoin, Ethereum, U.S. equities, bonds, gold and real estate onto the same platform. The bank will therefore expand its presence in crypto-linked investment products through an established fund lineup managing approximately $1.29 billion in crypto ETF assets.
