Goldman Sachs, America’s fifth-largest banking institution by total assets ($751.7 billion), has officially acquired NEOS Investments and its Bitcoin High Income ETF (BTCI) worth $1.1 billion.
Goldman Sachs’ new Bitcoin ETF product
Announced on August 12, the $2.25 billion deal gives Goldman Sachs a prominent position in the crypto ETF industry without having to launch a product of its own. It also bypasses delays with the US Securities and Exchange Commission (SEC), where Goldman Sachs had filed an application for its native ETF four months ago.
Notably, the NEOS Bitcoin ETF is what is referred to as a “covered-call” synthetic ETF. This means it tracks the digital asset’s price and sells options contracts to generate consistent yield. It charges investors a fee of 0.99%, matching rivals such as Roundhill but facing fierce competition from BlackRock’s 0.65%.
While such ETFs cap investors’ upside potential in crypto bull markets, they indicate growing institutional engagement with the digital asset industry. Increased adoption not only favors capital inflows and prices, but also catalyzes improved security and regulation in the sector.
Swiss National Bank has BTC exposure through MSTR
On this front, the Swiss National Bank (SNB) has not been left behind. In a filing to the SEC this week, the European central bank revealed a multi-million-dollar position in the Bitcoin treasury firm Strategy. More specifically, the bank owns 736,300 shares of MSTR, worth about $72 million.
Ironically, the SNB has been quite vocal against Bitcoin serving as an official sovereign reserve asset because of its volatility. Central banks are also generally prohibited from direct crypto exposure.
