Goldman Buys the Bitcoin Yield Machine
Goldman Sachs agreed to acquire NEOS Investments, the options-income ETF manager, for a reported $2.25 billion, per CoinDesk — a deal spanning roughly $6 billion in funds, including about $1 billion in bitcoin and ether income ETFs such as BTCI. BTCI generates monthly payouts by holding bitcoin-linked products and selling call options; NEOS's own notice anticipated 92% of July's distribution as return of capital, and the fund's one-year total return is roughly −41%.
Goldman's BTCI: income without the coin
The fund Goldman just paid up for doesn't own a single bitcoin. BTCI holds other bitcoin-linked products and sells call options against them — bets that pay a fee now in exchange for capping your gains if the price runs. That's how it throws off a monthly cheque.
Read the small print. The fund itself labelled 92% of July's payout a return of capital, and it's down about 41% over the year. A 27% "yield" on a fund losing 40% isn't income. It's your own pot, paid back monthly with a statement attached.
So Wall Street's next bitcoin product isn't ownership. It's a yield wrapper that keeps you one more step from the coin. You get a distribution rate to point at. Someone else holds the keys — and even the exposure is second-hand.
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Goldman Sachs acquires Neos with $1 billion Bitcoin high income ETF allocation
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4 sources
- THE STREET: Goldman Sachs is paying $2.25 billion to get into Bitcoin income game · thestreet.com · T2
- CROWDFUNDINSIDER: Goldman Sachs Set to Secure Bitcoin and Ethereum Income ETFs via Neos Investments Dealhttps · crowdfundinsider.com · T2
- Goldman Sachs acquires Neos with $1 billion Bitcoin high income ETF allocation · youtube.com · T3
- Goldman Sachs drops $2.25 billion to hijack the Bitcoin yield market and leapfrog BlackRock by 19x · cryptoslate.com · T2