Goldman Sachs has acquired NEOS Investments for $2.25 billion, enhancing its ETF assets to over $130 billion and competing with BlackRock's BITA fund.
Goldman Sachs has announced its acquisition of NEOS Investments in a deal valued at up to $2.25 billion, significantly expanding its footprint in the ETF market.
This acquisition will elevate Goldman Sachs' ETF assets to over $130 billion, positioning it to compete with BlackRock's BITA fund.
The acquisition is expected to finalize in early 2027, pending regulatory approvals and performance benchmarks. NEOS manages the $1.1 billion BTCI bitcoin synthetic ETF, which utilizes a covered-call strategy on bitcoin exchange-traded products (ETPs) to generate an approximate yield of 27%. Despite this, BTCI has faced a notable decline of about 43% over the past year and has an expense ratio of 0.99%.
Goldman's move allows it to access a growing $30 billion options-based ETF segment across 19 funds. This strategic acquisition aligns with the firm's broader ambition to enhance its ETF management capabilities in a competitive landscape that includes BlackRock.
Launched in October 2024, BTCI has quickly amassed over $1 billion in assets, highlighting its rapid growth within the ETF sector. Eric Balchunas, a senior ETF analyst at Bloomberg, noted that this acquisition clarifies Goldman's previous hesitation to launch its own bitcoin covered call ETF product.
In April, Goldman filed with the SEC for the Goldman Sachs Bitcoin Premium Income ETF, which intends to employ a similar covered call strategy. Balchunas remarked on the strategic timing of the acquisition, suggesting it positions Goldman favorably against BlackRock's existing offerings.
As of June 30, 2026, Goldman Sachs Asset Management, along with Innovator and NEOS, manages over $130 billion in ETF assets. In contrast, BlackRock recently launched its own bitcoin income ETF, BITA, which aims for a 15-25% annual yield with a lower expense ratio of 0.65%.
Following the deal, NEOS co-founders Troy Cates and Garrett Paolella will join Goldman Sachs as partners, further strengthening Goldman's position in the rapidly evolving ETF market.
The derivative income ETF sector has seen explosive growth, reaching approximately $180 billion in assets, with a compound annual growth rate exceeding 70% since 2021. By acquiring NEOS, Goldman Sachs is strategically positioning itself to leverage this market expansion.
