Goldman Sachs makes surprise jump into Bitcoin ETFs with a product one analyst dubs ‘boomer candy’

Goldman Sachs has long been content to watch the crypto craze from the sidelines, but in a surprise move, the big bank on Tuesday revealed plans for its own product in the form of a Bitcoin Premium Income ETF.

The new Goldman fund, which was described in a regulatory filing, is structured a little differently from traditional spot Bitcoin ETFs. The fund aims to buy other exchange-traded products that hold Bitcoin, rather than hold Bitcoin itself, and sell call options on those funds. 

Goldman Sachs described the product as an “options overwrite strategy” that creates regular income from the sale of the call positions. The firm added that, in modest or falling Bitcoin markets, the ETF could outperform spot Bitcoin ETFs, but that its performance could lag those funds during times when Bitcoin experiences rapid price appreciation.

Although this is Goldman’s first Bitcoin ETF filing, the bank will not be the first issuer to offer a Bitcoin ETF with an options strategy. Grayscale offers a Bitcoin covered call ETF, and BlackRock has filed for a similar product. 

Goldman has long had a hot-and-cold relationship with Bitcoin. In 2020, Read Entire Article