Goldman Sachs Acquires NEOS for $2.25B to Scale Crypto Income ETFs

Expanding Active ETF Holdings Incorporating Digital Asset Yield Funds Strategic Scale and Leadership Outlook

Expanding Active ETF Holdings

In a strategic move designed to broaden its active management roster, The Goldman Sachs Group, Inc. reached a definitive agreement on August 12, 2026, to purchase NEOS Investments. The transaction structure includes cash and equity considerations valued up to $2.25 billion, tied to specific performance metrics and service milestones.

Founded four years ago in 2022, NEOS rapidly developed a reputation for systematic options-driven strategies tailored for yield-focused investors. As of mid-2026, the firm oversaw $30 billion in assets across 19 exchange-traded products.

Combining NEOS with Goldman Sachs Asset Management and the previously completed $2 billion purchase of Innovator Capital Management creates a formidable active fund ecosystem. Together, these platforms represent more than $130 billion in exchange-traded assets under supervision.

This consolidated footprint elevates Goldman Sachs Asset Management to the eighth-largest manager of active ETFs globally, controlling approximately $80 billion specifically focused on active strategies.

Incorporating Digital Asset Yield Funds

The takeover significantly expands Goldman’s capacity in options-based income products, an asset class that has experienced rapid growth within the broader industry. Morningstar figures indicate that derivative-based yield funds across the sector hold roughly $180 billion in assets, reflecting a compound annual growth rate exceeding 70% since 2021.

Investors seeking consistent distribution yields alongside risk protection inside tax-efficient structures have heavily favored these instruments amidst interest rate fluctuations.

A key element of the deal involves NEOS’s suite of digital asset yield products. The specialized platform operates three crypto-linked options funds: the Bitcoin High Income ETF (BTCI), the Boosted Bitcoin High Income ETF (XBCI), and the Ethereum High Income ETF (NEHI). BTCI stands as the flagship crypto product, holding over $1 billion in net assets while utilizing options overlays to generate double-digit annualized yields.

XBCI and NEHI hold around $111 million and $77 million, respectively. Rather than holding physical digital currencies directly, these vehicles gain synthetic spot exposure via exchange-traded products and write call options to collect premium distributions for investors.

Market Positioning, Leadership Integration, and Expected Closing Timeline

This acquisition allows Goldman Sachs to quickly establish a dominant stance in crypto income strategies.

Financial analysts noted that the move provides immediate scale in high-yield crypto offerings, allowing the investment bank to surpass existing market solutions such as BlackRock’s iShares Bitcoin Premium Income ETF (BITA), which managed $59 million.

Goldman had previously submitted filings for its own Bitcoin Premium Income ETF earlier in 2026, making this acquisition a direct path toward market leadership without starting from scratch.

To preserve the operational continuity and investment philosophy that fueled NEOS’s rapid expansion, co-founders Garrett Paolella and Troy Cates will join Goldman Sachs Asset Management as partners. The remaining portfolio managers and client service personnel are likewise expected to integrate fully into the institution.

Financial advisors involved in the deal include Goldman Sachs Global Banking & Markets advising the buyer, alongside legal counsel from Wachtell, Lipton, Rosen & Katz and Willkie Farr & Gallagher LLP. Barclays served as exclusive financial advisor to NEOS, with Ropes & Gray LLP providing legal guidance.

The transaction is projected to close during the first quarter of 2027, following standard regulatory filings and customary closing conditions.