Goldman Sachs has agreed to acquire NEOS Investments, a specialist in systematic options-based income exchange-traded funds, in a cash-and-equity transaction valued at up to $2.25 billion. The deal, announced on August 12, 2026, is subject to the achievement of certain performance and service commitments and is expected to close in the first quarter of 2027 pending regulatory approval.

NEOS managed approximately $30 billion in assets across 19 options-based income ETFs as of June 30, 2026. The acquisition expands Goldman Sachs Asset Management’s existing options-based ETF capabilities and is projected to lift the firm’s total ETF assets under supervision above $130 billion when combined with prior deals, including the earlier purchase of Innovator Capital Management. That scale would position Goldman among the top eight active ETF managers globally, with roughly $80 billion in active ETFs.

Bitcoin Income Fund at the Center

A key element of the NEOS platform is the BTCI fund, a bitcoin high-income ETF that has grown to about $1.1 billion in assets since its launch in October 2024. The fund does not hold bitcoin directly. Instead, it gains exposure through spot bitcoin exchange-traded products and sells call options against those holdings to generate monthly distributions. The strategy has produced a yield of roughly 27 percent, though the fund has declined approximately 43 percent over the past year. Its expense ratio stands at 0.99 percent. Distributions may in part represent a return of capital rather than pure investment income.

NEOS also operates a similar Ethereum high-income product, giving Goldman Sachs immediate scale in crypto-related income strategies. The firm had filed its own Goldman Sachs Bitcoin Premium Income ETF with regulators in April 2026, proposing a comparable covered-call structure. The NEOS acquisition provides an established product and distribution rather than requiring the bank to build assets from a new launch.

Competition and Market Context

BlackRock launched its own bitcoin income ETF, BITA, on Nasdaq in mid-June 2026. That fund targets an annual yield in the 15-to-25 percent range by writing covered calls on a portion of its holdings of the firm’s spot bitcoin ETF, with an expense ratio of 0.65 percent. The NEOS transaction allows Goldman Sachs to enter the same category with a larger existing bitcoin income product already in the market.

The broader derivative-income ETF segment has expanded rapidly, reaching roughly $180 billion in industry assets and compounding at more than 70 percent annually since 2021. Demand for high-yielding, options-based products has drawn both traditional asset managers and specialized issuers seeking monthly income streams for investors.

Leadership and Integration

NEOS co-founders Troy Cates and Garrett Paolella are expected to join Goldman Sachs Asset Management as partners after the transaction closes. The full NEOS team is anticipated to remain with the business, which will operate as a focused ETF platform within the larger asset-management organization, supported by expanded distribution, risk, and operational resources.

Goldman Sachs described the purchase as a way to broaden its offering of derivative-based solutions and meet growing demand for income and outcome-oriented strategies across investor portfolios. The deal follows the firm’s earlier acquisition of Innovator Capital Management, another options-focused ETF provider, underscoring a multi-year effort to scale its active ETF franchise through both organic development and targeted purchases.

As of the announcement date, the combined platform of Goldman Sachs Asset Management, Innovator, and NEOS stood at more than $130 billion in ETF assets under supervision based on June 30, 2026 figures. Closing remains contingent on regulatory clearances and customary conditions.