Goldman Sachs Joins BlackRock in Filing for Bitcoin Income ETF

TLDR

• Goldman Sachs has filed with the SEC for a Bitcoin Premium Income ETF
• The fund will invest at least 80% of its assets in bitcoin-exposure products, not bitcoin directly
• Income is generated by selling call options on bitcoin ETFs
• BlackRock is also filing a similar product; Morgan Stanley launched a bitcoin ETF last week
• Goldman CEO David Solomon has said he personally owns a small amount of bitcoin

Goldman Sachs has filed a registration statement with the SEC for a Bitcoin Premium Income ETF, making it one of the bank’s first direct moves into cryptocurrency investment products.

The fund will invest at least 80% of its net assets in products that provide bitcoin exposure. These include spot bitcoin ETFs, options on spot bitcoin ETFs, and options on bitcoin ETF indices. The fund will not hold bitcoin directly.

To generate income, the fund will sell call options on bitcoin ETFs at a premium. This means investors collect option premiums but give up some potential gains if bitcoin prices rise sharply.

This trade-off — steady income in exchange for capped upside — is designed for investors who want exposure to bitcoin but also want regular returns, similar to a dividend-paying stock.

Goldman becomes the second major bank to file for a bitcoin ETF. Morgan Stanley launched its own bitcoin ETF last week. BlackRock, the world’s largest asset manager, has also filed for a similar income-focused product expected to trade under the ticker BITA.

Bloomberg analyst Eric Balchunas called Goldman’s filing a “shock,” saying he did not expect the bank to move into this space. He noted Goldman filed under the Investment Company Act of 1940, unlike BlackRock, which filed under the Securities Act of 1933.

How the Structure Works

The 1940 Act filing means Goldman must use a Cayman Islands subsidiary to hold commodity-linked assets, a workaround required by regulatory rules that limit funds under this framework from directly holding commodities like bitcoin.

Balchunas suggested Goldman may be responding to client demand for bitcoin exposure with less volatility, with investors willing to trade some upside for income and lower risk.

Goldman’s Shift on Crypto

Goldman CEO David Solomon has described himself as an “observer of bitcoin,” saying he personally owns a small amount. He has pointed to tokenization as an area of blockchain he sees as important for future financial markets.

Solomon has acknowledged that tighter regulations in recent years slowed Goldman’s crypto activity. He said the bank needs to “get it right” as regulatory clarity improves.

Bitcoin was trading around $75,000 at the time of the filing, up from an intraday low near $74,000, after reaching as high as $76,000 earlier in the day.

Goldman’s filing adds to a growing list of Wall Street firms packaging bitcoin into structured income products aimed at a broader range of investors.

The filing is currently under SEC review, with no launch date confirmed.

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