On Tuesday, Goldman Sachs submitted a proposal for an exchange-traded fund designed to create income by selling options linked to Bitcoin’s price, reflecting its cautious entry into the digital assets arena. The proposed Goldman Sachs Bitcoin Premium ETF plans to invest at least 80% of its portfolio in assets offering exposure to Bitcoin, including those tracking its spot price and related derivatives.
The fund aims to generate returns from the premiums paid by investors seeking leveraged access to Bitcoin through options sold on Bitcoin ETFs. Managing a substantial $3.65 trillion in assets under management (AUM), Goldman Sachs’ move marks its foray into what Bloomberg’s Senior ETF Analyst Eric Balchunas, who expressed surprise via X, termed “the Bitcoin ETF game.”
Balchunas highlighted the fund’s reliance on a Cayman Islands subsidiary to navigate regulatory constraints concerning commodities. This strategy contrasts with BlackRock’s similar product, which utilizes a ’33 Act structure. He speculated that Goldman Sachs might be aiming to outpace BlackRock in the market.
In January, BlackRock filed for an SEC registration of its iShares Bitcoin Premium Income ETF, designed to earn income through call options and potentially compete with existing covered-call Bitcoin ETFs like NEOS’ BTCI, which boasts $1 billion in AUM. Notably, BlackRock’s actively managed premium ETF is expected to have a higher expense ratio than its spot Bitcoin-tracking offering.
Since the launch of BlackRock’s spot Bitcoin ETF in 2024, it has attracted $63.8 billion in net inflows, as reported by CoinGlass. Morgan Stanley recently introduced its own spot Bitcoin ETF, which has garnered roughly $68 million thus far. Earlier this year, Goldman Sachs CEO David Solomon disclosed that while he holds a minimal amount of Bitcoin, he views himself more as an observer than an investor in the predominant digital asset.