Goldman Sachs Acquires NEOS Investments for $2.25B to Boost Crypto ETF Presence

Goldman Sachs Expands Crypto ETF Footprint

Goldman Sachs has announced its agreement to acquire NEOS Investments for up to $2.25 billion, a strategic move that will enhance its presence in the growing market for crypto income exchange-traded funds (ETFs). This acquisition allows Goldman to tap into NEOS's management of approximately $30 billion in options-based income ETFs, including one of the largest Bitcoin covered-call funds available.

The deal, which consists of cash and equity components contingent on performance, is expected to close in the first quarter of 2027, pending regulatory approval. By integrating NEOS's established portfolio, Goldman Sachs positions itself more effectively in the digital-asset ETF sector, which it has been aiming to penetrate independently.

Significant Market Growth

NEOS's flagship Bitcoin covered-call fund, BTCI, has attracted around $1 billion in assets since its launch, providing yield to investors by selling options linked to Bitcoin. In addition to Bitcoin, NEOS also manages an Ethereum product, further solidifying Goldman’s foothold in the crypto ETF market.

This acquisition comes as the market for derivative-income ETFs has surged, reaching approximately $180 billion in assets and boasting a compound annual growth rate of over 70% since 2021, as reported by Morningstar. A considerable portion of this growth can be attributed to products linked to cryptocurrencies.

David Solomon, Chairman and CEO of Goldman Sachs, emphasized the importance of NEOS's strategies in generating income through these innovative financial products. Following the acquisition, NEOS co-founders Garrett Paolella and Troy Cates will join Goldman Sachs Asset Management as partners.