The proposed fund would put at least 80% of its net assets into investments tied to Bitcoin's price, including spot Bitcoin ETFs and derivatives linked to those products
Bitcoin News
Goldman Sachs filed a prospectus on Tuesday to launch an exchange-traded fund that gives investors access to Bitcoin without the firm holding the cryptocurrency directly. The fund, called the Goldman Sachs Bitcoin Premium Income ETF, would invest in other exchange-traded products that hold Bitcoin rather than acquiring the asset itself. Goldman oversees $3.65 trillion in assets under management.
The proposed fund would put at least 80% of its net assets into investments tied to Bitcoin's price, including spot Bitcoin ETFs and derivatives linked to those products. Unlike funds from BlackRock and Fidelity that hold Bitcoin outright and closely follow its market price, Goldman's vehicle would sit one step further from the asset. The firm confirmed in the filing that the fund's returns would reflect both the gains and losses experienced by the spot Bitcoin ETPs it holds.
To generate income, the fund would sell call options on Bitcoin ETPs and collect the premiums paid by buyers. Goldman said the overwrite level, meaning the portion of Bitcoin exposure covered by sold options, would typically fall between 40% and 100% of the portfolio's Bitcoin value. Selling those options creates a ceiling on how much the fund can earn if Bitcoin prices rise sharply.
If the value of the underlying Bitcoin ETPs climbs past the strike price of a sold call option, the fund would lose money on that short position. Goldman acknowledged in the filing that those losses would limit the upside return of its long exposures. One market participant on X suggested the strategy may effectively function as a covered call on BlackRock's spot Bitcoin ETF, which trades under the ticker IBIT.
Bloomberg Senior ETF analyst Eric Balchunas said he did not expect Goldman to enter the Bitcoin ETF market in this way. He noted on X that the fund is structured through a Cayman Islands subsidiary, which helps the firm manage regulatory restrictions tied to holding commodities. Balchunas said that structure could allow Goldman to bring the product to market ahead of a similar fund BlackRock filed for in January.
If approved, BlackRock's iShares Bitcoin Premium Income ETF would compete with existing Bitcoin covered-call ETFs such as NEOS' BTCI, which holds $1 billion in assets. Morgan Stanley debuted its own spot Bitcoin ETF last week, generating roughly $34 million in first-day trading volume. BlackRock's spot Bitcoin ETF has accumulated $63.8 billion in net inflows since it launched in 2024.
Goldman's filing comes after the firm reduced its combined spot Bitcoin and Ethereum ETF holdings by 39.4% in the fourth quarter of last year. The bank has also recently become the largest holder of spot XRP ETF shares among disclosed institutional holders. Goldman CEO David Solomon said in February that he personally holds a small amount of Bitcoin, describing himself as more of an observer than an investor in the asset.
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