Goldman Sachs submitted a prospectus to the SEC on Tuesday for a Bitcoin-focused income ETF that takes an indirect route. Rather than holding Bitcoin directly, the fund will gain exposure through spot Bitcoin ETFs and their derivatives, while generating yield via options.
Structure: 80% in BTC-linked instruments, no direct ownership
At least 80% of net assets will track Bitcoin-linked exchange-traded products, including spot ETFs and related derivatives. This approach places Goldman one layer away from the underlying asset, contrasting with BlackRock and Fidelity funds that hold BTC outright. The ETF's performance depends on the price moves of those linked instruments rather than Bitcoin's spot price alone.
Covered-call strategy: premium income with capped upside
The fund plans to sell call options on Bitcoin ETFs, collecting premiums from buyers. However, this strategy limits gains during strong rallies. Goldman says the overwrite level could range between 40% and 100% of Bitcoin exposure. If prices surge above option strike levels, the fund would realize losses on those short positions, capping its upside.
Competitive landscape: Morgan Stanley, BlackRock already in play
The filing arrives as Wall Street firms rush to offer yield-generating crypto products. Morgan Stanley recently launched its own spot Bitcoin ETF product, and BlackRock proposed a similar income structure earlier this year. Bloomberg analyst Eric Balchunas noted that Goldman's regulatory choice — using the Investment Company Act of 1940 — requires a Cayman Islands subsidiary to manage restrictions on direct commodity holdings.
Shifting exposure: BTC/ETH ETF holdings drop, XRP increases
Goldman cut combined Bitcoin and Ethereum ETF holdings by 39.4% last quarter, while boosting exposure to XRP-linked ETFs among institutional positions. The move signals the bank is actively rebalancing its crypto portfolio amid changing market conditions.