American investment bank Goldman Sachs continues its massive expansion in the actively managed funds segment. It has agreed to acquire NEOS Investments, with the maximum value of the transaction reaching USD 2.25 billion. This acquisition will bring Goldman Sachs Asset Management not only USD 30 billion in assets under management, but also specialized options strategies and funds with exposure to Bitcoin and Ethereum.

Transaction terms

The transaction was to be completed in the first quarter of 2027 after obtaining the necessary regulatory approvals. NEOS Investments, founded only in 2022, managed to grow over approximately 4 years of its existence into a significant player with USD 30 billion in assets under management across 19 ETF funds. Its product portfolio focuses primarily on options strategies, income generation and regular monthly distribution of returns to investors.

The agreement also includes the complete acquisition of the investment team and the existing ETF platform. The company’s co-founders Troy Cates and Garrett Paolella, together with the broader NEOS team, will therefore join Goldman Sachs Asset Management, giving the bank direct access to their specific know-how. From a financial perspective, the maximum purchase price of USD 2.25 billion corresponds to approximately 7.5% of NEOS’s total assets under management, representing a valuation of roughly USD 75 million for every USD 1 billion in managed capital.

Combining options and crypto-assets

Among the key elements of NEOS’s offering are specialized funds linked to the digital asset market. These primarily include the Bitcoin High Income ETF (BTCI), Boosted Bitcoin High Income ETF (XBCI) and Ethereum High Income ETF (NEHI). These instruments allow investors to gain exposure to movements in the two largest cryptocurrencies, while being tailored to investors requiring regular cash flow.

The structure of these cryptocurrency funds differs from standard spot ETFs. Instead of simply tracking the price of Bitcoin or Ether, NEOS combines direct or indirect exposure to crypto-assets with derivative and options strategies. This approach transforms the natural volatility of crypto-assets into regular monthly income, thereby creating a distinct category of investment products focused on yield.

Jump to eighth place

The acquisition of NEOS Investments fits into the broader strategic restructuring of Goldman Sachs’s asset management division. Combined with the recently announced acquisition of Innovator Capital Management, the bank’s global ETF platform will expand to approximately USD 130 billion in assets under management. Mathematically, NEOS alone, with its USD 30 billion, will therefore account for almost a quarter of the future total volume of Goldman Sachs’s ETF platform.

This capital shift will place Goldman Sachs eighth among the world’s largest managers of actively managed ETFs. However, the dynamics of the deal have also attracted attention among market analysts. Eric Balchunas, Bloomberg’s chief ETF analyst, described the transaction as a slight surprise, particularly given NEOS’s exceptionally rapid four-year growth since its founding and the fact that Goldman Sachs is carrying out two significant acquisitions in the ETF segment within a short period of time.

Own balance sheet

The acquisition announcement comes in an interesting context following the bank’s previous steps in the area of digital assets. In the first quarter of 2026, Goldman Sachs reduced its own reported exposure to cryptocurrency ETFs, completely exiting positions in funds linked to XRP and Solana, while also reducing its holdings in Bitcoin and Ethereum ETFs. Despite this reduction, however, the bank still reported more than USD 700 million in Bitcoin ETFs in its own investments at the end of the first quarter.

Warning: The content of this article is intended exclusively for informational purposes and does not constitute investment advice or a recommendation to purchase a specific asset. Investments in crypto-assets involve a high level of risk. The value of crypto-assets may fall as well as rise, and you may lose the entire amount invested. Crypto-assets are not protected by deposit guarantee schemes. Past returns are not a guarantee of future results.