Goldman Sachs continues to expand its exchange-traded fund business, focusing on investment products that combine exposure to digital assets with the potential for regular income. The bank has reached an agreement to acquire Neos Investments for up to $2.25 billion. The transaction will give Goldman Sachs access to an established lineup of ETFs that use options strategies to generate income from exposure to Bitcoin and Ethereum.
Once the transaction is completed, three Neos cryptocurrency ETFs will become part of Goldman Sachs Asset Management: Neos Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI), and Ethereum High Income ETF (NEHI). All three products are designed for investors seeking exposure to the performance of Bitcoin or Ethereum while using options strategies to generate recurring distributions. The funds do not directly hold the underlying cryptocurrencies. Instead, they use exchange-traded products linked to digital assets and derivatives as part of their investment strategies.
Goldman Sachs plans to pay up to $2.25 billion for Neos using a combination of cash and equity. The final value of the transaction will depend on the company meeting certain performance targets and servicing commitments. The acquisition is expected to close in the first quarter of 2027, subject to regulatory approvals and the completion of other customary conditions.
Neos Has Rapidly Expanded Through Options-Based Income Strategies
Neos Investments was founded in 2022 and has established a significant presence in the ETF market in a relatively short period of time. The company currently manages more than $30 billion in assets across 19 exchange-traded funds. Its product lineup is primarily built around strategies that use options and other derivatives to generate recurring income.
Neos funds provide investors with exposure to a wide range of traditional and digital assets, including U.S. stock indexes, gold, Bitcoin, and Ethereum. By using options, the funds can collect premiums and potentially distribute part of that income to investors on a regular basis. The combination of market exposure and recurring cash flow has helped drive demand for these types of investment products.
Goldman Sachs Chairman and CEO David Solomon said demand for actively managed ETFs continues to grow. According to Solomon, Neos’ investment approach complements Goldman Sachs’ existing products, including strategies focused on income generation, risk management, and outcome-oriented investing. The acquisition will therefore provide Goldman with more than just several new ETFs, giving the bank access to an established team and infrastructure for developing derivative-based investment products.
The broader market for these products has also expanded rapidly in recent years. According to Morningstar data cited by Goldman Sachs, ETFs using derivative-based income strategies currently manage approximately $180 billion in assets. Since 2021, the category has recorded a compound annual growth rate of more than 70%, highlighting why major asset managers are increasingly interested in the sector.
Neos Crypto ETFs Use Options to Generate Income
Unlike traditional spot Bitcoin ETFs, Neos’ cryptocurrency products follow a different investment model. They do not directly hold Bitcoin or Ethereum. Instead, the funds use exchange-traded products linked to the underlying digital assets and employ options strategies to generate additional income and make regular distributions to investors.
The largest of the three products is the Neos Bitcoin High Income ETF (BTCI). Launched in October 2024, the fund has already surpassed $1 billion in net assets. This makes BTCI significantly larger than some of its competitors in the rapidly developing market for Bitcoin ETFs that use options-based income strategies.
The Boosted Bitcoin High Income ETF (XBCI), launched in February 2026, currently manages approximately $111 million. The Ethereum High Income ETF (NEHI), launched in December 2025, has accumulated more than $77 million in net assets. Following the acquisition, Goldman Sachs will therefore gain several products covering two of the largest cryptocurrencies by market capitalization.
These funds may appeal to investors who want more than simple exposure to cryptocurrency price appreciation and are interested in generating recurring cash flow. However, the strategy also comes with trade-offs. Generating income through options can limit a fund’s upside potential during periods of sharp increases in the price of Bitcoin or Ethereum. Options strategies also do not eliminate the high volatility associated with digital assets, meaning investors remain exposed to significant market fluctuations.
The Acquisition Could Affect Goldman Sachs’ Own Bitcoin ETF Plans
The Neos transaction could also have implications for Goldman Sachs’ previously announced plans to launch its own Bitcoin Premium Income ETF. In April 2026, the bank filed documents for a fund that was expected to invest in other Bitcoin ETFs while using an options strategy to generate additional income.
However, after acquiring Neos, the need to develop a separate product with a similar structure could become less obvious. Goldman will gain control of BTCI, which already has significant assets, an established investment strategy, and an existing investor base. Bloomberg Intelligence senior ETF analyst Eric Balchunas suggested that the Neos acquisition could help explain why Goldman has not yet launched its own proposed product.
The comparison with iShares Bitcoin Premium Income ETF (BITA) from BlackRock is particularly notable. BlackRock launched BITA in June 2026, and the fund currently manages approximately $59 million. By comparison, BTCI has already surpassed $1 billion in assets. Acquiring an established fund of this size could allow Goldman Sachs to gain a significant position in the Bitcoin options-income segment without having to build a comparable product from the ground up.
Goldman Sachs has not yet confirmed whether the acquisition will change or cancel its plans for the proposed Bitcoin Premium Income ETF. As a result, the bank’s final strategy for the product remains unclear.
Goldman Sachs Continues to Expand Its ETF Business
The acquisition of Neos is part of Goldman Sachs’ broader strategy to strengthen its position in actively managed ETFs. In April 2026, the bank completed its acquisition of Innovator Capital Management, a company specializing in ETFs that use options to limit potential losses while generating income and preserving the possibility of capital appreciation.
Goldman Sachs is therefore gradually building a large platform that combines different types of actively managed ETF strategies. Following the integration of Goldman, Innovator, and Neos, the three businesses will collectively manage more than $130 billion across their global ETF platforms. The combined operation is expected to oversee approximately $80 billion in actively managed ETF assets.
According to Morningstar data cited by Goldman Sachs, this scale could make the company the eighth-largest provider of actively managed ETFs. The expansion is particularly significant as investor demand continues to move beyond traditional passive index funds. In recent years, greater attention has been directed toward products capable of generating additional income, managing specific risks, or applying more sophisticated investment strategies.
Following the completion of the transaction, Neos co-founders Troy Cates and Garrett Paolella are expected to join Goldman Sachs Asset Management as partners. Most of the Neos team, including investment professionals and client service specialists, is also expected to join Goldman.
As a result, Goldman Sachs will gain not only three established cryptocurrency ETFs but also an experienced team, investment technology, and an existing platform for developing options-based income products. The transaction highlights the growing efforts of major financial institutions to integrate digital assets into traditional investment structures. It also demonstrates increasing institutional interest in ETFs that combine exposure to Bitcoin and Ethereum with mechanisms designed to generate recurring income.
If the acquisition receives the necessary regulatory approvals and closes as planned, Goldman Sachs will become one of the most significant players in the cryptocurrency ETF sector focused on options-based income strategies. The purchase of Neos will allow the bank to accelerate the development of this business while strengthening its broader position in the rapidly growing market for actively managed exchange-traded funds.