Goldman Sachs to Acquire NEOS for Up to $2.25 Billion, Including Bitcoin Revenue ETF Business

Goldman Sachs Expands Active ETF Business Significantly with NEOS Acquisition

Goldman Sachs has reached an agreement to acquire NEOS Investments, which specializes in option income ETFs, for up to $2.25 billion (approximately 358.8 billion yen). The transaction will be conducted through a combination of cash and stock, and is expected to be completed in the first quarter of 2027, subject to regulatory approvals.

$30 Billion in ETF Assets to Fall Under Goldman’s Umbrella

Founded in 2022, NEOS manages 19 ETFs that generate income through option strategies, with approximately $30 billion (about 4.7 trillion yen) in assets under management. The final acquisition amount will depend on whether the company meets specific performance and service targets, with $2.25 billion being the maximum amount.

After the acquisition is completed, NEOS's products, employees, and customer relationships will be integrated into Goldman Sachs Asset Management. Co-founders Garrett Paolella and Troy Cates are also expected to join as partners.

This acquisition will expand Goldman’s ETF assets to approximately $130 billion (around 20 trillion yen), with active ETFs projected to reach about $80 billion (approximately 12.7 trillion yen). According to Morningstar data, this will position Goldman as the eighth-largest active ETF management company by asset size.

CEO David Solomon explained that NEOS's investment approach complements Goldman’s existing buffer strategies, performance strategies, and income strategies.

Acquisition Also Includes Bitcoin Revenue ETF

As part of this acquisition, the Bitcoin-related ETFs managed by NEOS will also come under Goldman’s umbrella. The flagship BTCI (Neos Bitcoin High Income ETF) has grown to approximately $1 billion (about 159.47 billion yen) and employs a strategy of selling options to gain premium income against Bitcoin exposure.

NEOS's Bitcoin-related ETFs do not directly hold Bitcoin but instead utilize derivatives to generate income from cryptocurrency-related exposure. The main source of high distribution income is the premiums from options, and these products do not directly reflect the price increase of Bitcoin itself.

In April, Goldman also applied for a Bitcoin Premium Income ETF, which aims to generate income through option sales while having indirect exposure to a spot Bitcoin ETF. With the acquisition of NEOS, Goldman will not only cultivate its own products from scratch but also incorporate an already operational Bitcoin revenue ETF business.

The total assets under management for option-based income ETFs have reached approximately $180 billion (about 28.7 trillion yen), growing at an annual rate of over 70% since 2021. Goldman had previously acquired Innovator Capital Management last year, continuing its expansion in the income and buffer ETF business.

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