Goldman Sachs has agreed to buy Neos Investments for up to $2.25 billion in cash and equity, bringing three cryptocurrency options-income exchange-traded funds into its asset-management business as Wall Street firms compete for a larger share of the fast-growing active ETF market.
The transaction, announced Wednesday, is expected to close in the first quarter of 2027, pending regulatory approval and customary closing conditions. The final price includes performance and service commitments, tying part of the consideration to Neos’ future results and client support.
The acquisition would add the Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI), and Ethereum High Income ETF (NEHI) to Goldman Sachs Asset Management’s lineup. These products seek to produce monthly distributions from options strategies while offering exposure linked to Bitcoin or Ethereum.
Goldman’s deal extends an acquisition strategy already visible in its purchase of Innovator Capital Management, completed in April for roughly $2 billion. Together, Innovator and Neos give Goldman a considerably larger presence in actively managed and derivative-based ETFs, a segment that can generate recurring management fees beyond the firm’s trading and dealmaking businesses.
Neos brings crypto income funds and a larger options platform
Neos, founded in 2022, manages more than $30 billion across 19 options-income ETFs, according to its website. Its products cover U.S. equity indexes, Bitcoin, Ether, and gold, using options contracts to seek income that can be distributed to shareholders monthly.
Its crypto funds take a different route from spot Bitcoin or Ether ETFs. Rather than holding Bitcoin or Ether directly, the funds gain market exposure through exchange-traded products linked to the underlying assets, then overlay options strategies intended to produce income.
That structure can appeal to holders seeking cash distributions from crypto-linked exposure, though it comes with trade-offs. Selling or structuring options to collect premiums can limit part of an asset’s upside during strong rallies, while the income produced is not fixed and depends on market conditions, volatility, portfolio positioning, and fund expenses.
BTCI, which launched in October 2024, had more than $1 billion in net assets as of Wednesday, according to Neos’ website. It is by far the largest of the three crypto funds included in the deal.
XBCI, launched in February, held about $111 million in net assets, while NEHI, launched in December 2025, had more than $77 million. The figures show that Bitcoin-linked income strategies have attracted more assets than comparable Ether products so far, although the newer launch dates also limit a direct comparison.
BlackRock has also entered the category. Its iShares Bitcoin Premium Income ETF, trading under the ticker BITA, launched in June and held about $59 million in net assets, according to the information provided. Goldman itself filed in April for a Bitcoin Premium Income ETF, though the firm has not said whether that plan will proceed after the Neos agreement.
Goldman expands its active ETF ambitions
Goldman said options-based derivative-income ETFs had grown to approximately $180 billion in industry assets, citing Morningstar. The firm said the category has expanded at a compound annual growth rate of more than 70% since 2021.
That growth has turned income-oriented ETF issuers into valuable acquisition targets. Standard index-tracking ETFs remain central to the market, but options-income products offer issuers a more specialized, actively managed format that can command higher fees and requires portfolio-management capabilities that are harder to replicate than a plain index fund.
Goldman, Innovator, and Neos managed more than $130 billion across their global ETF platforms as of June 30, Goldman said. Once the Neos purchase is completed, the combined business would oversee about $80 billion in active ETFs and become the eighth-largest provider of active ETFs, according to Goldman’s Morningstar-based estimate.
The planned structure also retains Neos’ leadership. Co-founders Troy Cates and Garrett Paolella are expected to join Goldman Sachs Asset Management as partners after closing. The rest of Neos’ investment and client-service team is also expected to move to Goldman.
A strategic purchase, not a verdict on crypto prices
The deal gives Goldman an established distribution and product platform in an area where crypto exposure is packaged for income-focused portfolios rather than solely for directional bets on token prices. BTCI’s more than $1 billion asset base provides Goldman immediate scale in that niche, while XBCI and NEHI broaden its lineup across different risk and income approaches.
The acquisition does not change the underlying features of options-income funds. Monthly payouts can vary, may include more than one source of return, and should not be treated as guaranteed interest payments. Crypto-linked options strategies also remain exposed to sharp swings in the products used to track Bitcoin and Ether, even if options premiums can cushion certain market conditions.
For Goldman, the more immediate payoff would be a deeper foothold in the active ETF business and the specialized infrastructure needed to run options-based funds. For Neos shareholders, the transaction places a young issuer with rapidly accumulated assets inside one of Wall Street’s largest asset-management platforms, subject to the approvals required before its expected 2027 closing.
Explore how tokenized assets and ETFs intersect with TradFi in our guide: what are ETFs and how do they work.
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