Goldman Sachs Files Bitcoin ETF That Sells Options for Yield

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

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

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

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.