Goldman Sachs has agreed to acquire NEOS Investments for up to $2.25 billion through a cash-and-equity transaction, as reported by Reuters. The deal will add approximately $30 billion in assets and 19 options-based income ETFs to Goldman's asset management business. Among the 19 NEOS funds included in the transaction are the Neos Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI), and Ethereum High Income ETF (NEHI), giving Goldman an existing lineup of crypto-linked income products. The final payment will depend on performance and service commitments included in the acquisition agreement, with the transaction scheduled to close during the first quarter of 2027, subject to regulatory clearances and customary closing conditions. As reported by Bloomberg, the acquisition specifically grants Goldman access to the $1.1 billion BTCI bitcoin synthetic ETF, which yields approximately 27% through a covered-call strategy on bitcoin ETPs. According to The Economic Times, the acquisition will boost Goldman's active ETF assets to $80 billion, with approximately $80 billion of the combined amount held in actively managed ETFs.
Once completed, the purchase will take Goldman Sachs Asset Management's total ETF assets beyond $130 billion, according to the bank's announcement. The acquisition positions Goldman Sachs as the eighth-largest active ETF provider by assets as of June 30, based on Morningstar figures. The deal reflects Goldman's broader push to build out its ETF business, with NEOS managing approximately $30 billion across 19 ETFs that track a range of indexes and use options to generate income and limit losses. As reported by The Economic Times, the acquisition follows Goldman's previous acquisition of Innovator Capital Management for approximately $2 billion in April 2026, which managed $28 billion across 159 ETFs. Chairman and CEO David Solomon described NEOS's investment process as complementary to Goldman's existing capabilities, stating that as investor demand for active ETFs grows, NEOS's disciplined investment approach is highly complementary to their buffer, managed outcome and income strategies.
The BTCI bitcoin synthetic ETF, launched in October 2024, has crossed $1.1 billion in assets as of Wednesday, making it the largest of NEOS's three crypto-focused products. The fund generates approximately 27% yield through a covered-call strategy on bitcoin ETPs, selling call options against spot bitcoin ETP positions to generate monthly distributions. However, the fund does not directly hold bitcoin and charges a 0.99% expense ratio. According to Bloomberg senior ETF analyst Eric Balchunas, the acquisition could allow Goldman to "leapfrog" BlackRock's iShares Bitcoin Premium Income ETF (BITA), which has accumulated about $59 million in net assets compared to BTCI's $1.1 billion. The fund's portfolio uses Bitcoin ETFs alongside options linked to the Cboe Bitcoin U.S. ETF Index, as detailed in a Neos shareholder report for the period ending November 2025. NEOS's flagship S&P 500 High Income ETF returned about 19% in the year to June, while its total return since inception was nearly 15%.
The acquisition positions Goldman to compete directly with BlackRock's BITA bitcoin income ETF, which launched on Nasdaq on June 16 and targets a 15-25% annual yield with a 0.65% expense ratio. As reported by Bloomberg, Goldman filed for the Goldman Sachs Bitcoin Premium Income ETF with the SEC on April 14, proposing a structurally similar covered-call product. The derivative income ETF category has grown to roughly $180 billion in assets industry-wide, compounding at more than 70% annually since 2021, according to Morningstar. According to The Economic Times, there is growing demand for such products as institutional investors seek recurring income and protection against portfolio losses amid market volatility. The transaction follows Goldman's asset and wealth management division generating $4.6 billion in second-quarter revenue, up 20% from the same period in 2025, while overseeing approximately $4.04 trillion in assets at the end of June. Jefferies analysts noted that the deal capitalises on the accelerating adoption of derivative income ETFs and deepens durable asset and wealth management revenues.
NEOS co-founders Troy Cates and Garrett Paolella will become partners at Goldman Sachs Asset Management after the purchase closes, as reported by Reuters. The remaining NEOS investment, client service, and operating teams are also expected to join Goldman. As reported by The Economic Times, the acquisition, expected to close in the first quarter of 2027, will increase Goldman's active ETF assets to $80 billion. Jefferies analysts noted that the deal capitalises on the accelerating adoption of derivative income ETFs and deepens durable asset and wealth management revenues. The acquisition follows Goldman's strategic focus on expanding its asset management division to tap into growing demand for actively managed ETFs. Goldman has not said whether it intends to withdraw, modify, or proceed with its Bitcoin Premium Income ETF following the Neos transaction, though Bloomberg senior ETF analyst Eric Balchunas suggested the acquisition could explain why the Goldman product filed in April has not launched.
