Goldman Sachs acquires NEOS Investments for up to $2.25 billion

Goldman Sachs has agreed to acquire ETF specialist NEOS Investments in a cash-and-equity deal valued at up to $2.25 billion. Expected to close in Q1 2027, the acquisition folds NEOS' $30 billion platform into Goldman Sachs Asset Management. This integration includes three crypto options-income ETFs, notably the $1 billion BTCI fund, giving Goldman a ready-made foothold in the rapidly expanding $180 billion derivative-income ETF market and elevating its active ETF business to $80 billion.

Goldman Sachs NEOS acquisition

• ▪The acquisition of NEOS Investments by Goldman Sachs is expected to close in the first quarter of 2027, pending regulatory approval.
• ▪NEOS Investments co-founders Garrett Paolella and Troy Cates will join Goldman Sachs Asset Management as partners once the transaction closes.
• ▪Goldman Sachs agreed to acquire NEOS Investments in a cash-and-equity deal valued at up to $2.25 billion, contingent on performance and service targets.

NEOS crypto income ETFs

• ▪The Neos Bitcoin High Income ETF (BTCI) is the largest of NEOS Investments' crypto funds, holding over $1 billion in net assets as of August 12, 2026.
• ▪The acquisition of NEOS Investments brings three crypto options-income ETFs under Goldman Sachs Asset Management: the Neos Bitcoin High Income ETF (BTCI), the Boosted Bitcoin High Income ETF (XBCI), and the Ethereum High Income ETF (NEHI).
• ▪The Neos Bitcoin High Income ETF (BTCI) charges a 0.99% expense ratio and its distributions may in part represent a return of capital rather than net investment income.
• ▪The Neos Bitcoin High Income ETF (BTCI), the Boosted Bitcoin High Income ETF (XBCI), and the Ethereum High Income ETF (NEHI) do not hold cryptocurrencies directly, but instead use options strategies on exchange-traded products to generate monthly income.

Derivative income ETF growth

• ▪BlackRock launched its own competitive bitcoin income ETF, the iShares Bitcoin Premium Income ETF (BITA), on June 16, 2026, which targets a 15-25% annual yield and had accumulated about $59 million in net assets by August 2026.
• ▪The derivative-income ETF category has grown to approximately $180 billion in assets industry-wide, experiencing a compound annual growth rate of over 70% since 2021, according to Morningstar data.

Goldman ETF business expansion

• ▪NEOS Investments manages approximately $30 billion across 19 options-based income ETFs, which will be integrated into Goldman Sachs Asset Management.
• ▪The NEOS Investments acquisition, combined with Goldman Sachs' existing $40 billion in options-based ETFs and its prior acquisition of Innovator Capital Management, will push Goldman Sachs' active ETF business to about $80 billion.
• ▪Goldman Sachs filed with the SEC in April 2026 for its own Goldman Sachs Bitcoin Premium Income ETF, a covered-call product structurally similar to NEOS Investments' BTCI.
• ▪The combined global ETF platforms of Goldman Sachs, Innovator Capital Management, and NEOS Investments hold more than $130 billion in assets under supervision as of June 30, 2026, making Goldman Sachs the eighth-largest active ETF manager.

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