Goldman Sachs announced an agreement to acquire NEOS Investments in a transaction valued up to $2.25 billion, signaling an expansion of its offerings in crypto-linked income products. The acquisition, a mix of cash and equity, will add several popular Bitcoin and Ethereum high income exchange-traded funds (ETFs) to the firm’s asset management platform.
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AAPLNEOS Investments joins Goldman Sachs
NEOS Investments, known for its innovative options-based ETF strategies, manages approximately $30 billion across 19 different funds. The company’s core products include the NEOS Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI), and Ethereum High Income ETF (NEHI), all of which will become part of Goldman Sachs Asset Management’s portfolio following the acquisition.
As part of the deal, NEOS co-founders Garrett Paolella and Troy Cates will join Goldman Sachs Asset Management as partners. The bank characterized NEOS’s methods as a strong complement to its existing buffer, managed-outcome, and income capabilities. CEO David Solomon described the opportunity as aligning Goldman’s broad reach and resources with NEOS’s entrepreneurial approach.
Goldman Sachs Asset Management currently oversees $40 billion in income-oriented, options-based ETF strategies. Together with NEOS’s $30 billion ETF assets, the merged entity is positioned to control approximately $80 billion in active ETFs. This scale places Goldman Sachs as the eighth-largest active ETF manager globally within a $130 billion ETF business, as reported by Morningstar.
| Company/Platform | Active ETF Assets | ETF Count |
|---|---|---|
| Goldman Sachs (pre-acquisition) | $40 billion | Varied |
| NEOS Investments | $30 billion | 19 |
| Combined (Post-acquisition) | $80 billion | 19+ |
Mini dictionary: NEOS Investments, a US-based asset manager, is recognized for option-based ETFs that generate monthly income, frequently using derivative strategies and crypto-linked funds to deliver enhanced yields for investors.
Bitcoin and Ethereum income ETFs
The acquisition brings Goldman Sachs a portfolio of high-income ETFs linked to cryptocurrencies. The largest of these, the NEOS Bitcoin High Income ETF, holds nearly $1 billion in assets, while the Boosted Bitcoin High Income ETF and Ethereum High Income ETF expand the firm’s exposure to digital asset derivatives. These ETFs do not hold physical Bitcoin or Ethereum, but instead seek to generate income by trading derivatives that reference these cryptocurrencies.
According to NEOS’s disclosures, their crypto income ETFs employ options strategies, primarily by selling options premiums, to provide income that is not directly tied to the price movements of the underlying digital assets.
NEOS co-founders described the transaction as combining their company’s “entrepreneurial spirit” with the scale and strength of Goldman Sachs, creating opportunities for broader growth and innovation in digital asset ETFs.
Growth in options-based and derivative-income ETFs
The deal follows Goldman Sachs’ previous acquisition of Innovator Capital Management and reflects the firm’s commitment to growing in the active and derivative-based ETF market. By acquiring NEOS, Goldman Sachs gains a substantial presence in crypto-linked income ETFs at a time when institutional interest in derivative-income products is increasing.
NEOS’s focus on using option strategies to pursue steady income complements Goldman Sachs’s broader ETF strategies, particularly as interest in income-generating, crypto-adjacent funds grows in the institutional market.
Goldman Sachs expects to close the NEOS acquisition in the first quarter of 2027, subject to regulatory approval.
