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Goldman Sachs is seeking to launch a Bitcoin-linked exchange-traded fund (ETF) that generates income by selling options, joining a growing group of asset managers trying to turn crypto volatility into yield.
A filing with the US Securities and Exchange Commission on 14 Apr details plans for the Goldman Sachs Bitcoin Premium Income ETF, which would invest in spot Bitcoin exchange-traded products and write call options against that exposure.
A premium income fund is designed to generate regular cash flow by collecting fees from options. It holds an asset, such as Bitcoin ETFs, and sells contracts to other investors in exchange for upfront payments, known as premiums. Those payments become income for the fund. The trade-off is that gains can be limited if prices rise sharply, while losses can still occur if prices fall, though the income helps offset part of the downside.
Goldman said it would typically write options on 40% to 100% of its Bitcoin exposure, seeking to outperform in flat or slow-rising markets.
Growing trade
The filing puts Goldman into an increasingly crowded segment of the crypto ETF market, a segment in which issuers are repackaging Bitcoin exposure into income-generating strategies rather than pure price tracking.
Grayscale has already rolled out a Bitcoin Covered Call ETF, also designed to boost income by systematically selling options on Bitcoin funds. As of late February, the fund reported a 30-day yield of 3.21%, reflecting income generated from its options strategy rather than pure price appreciation.
Other issuers, such as Roundhill and YieldMax, offer a similar structure to deliver frequent payouts to investors.Asset manager BlackRock filed for a similar Bitcoin premium income fund in January.
Income focus
Goldman's fund is built for income rather than growth. According to the filing, the fund would not hold Bitcoin directly, instead gaining exposure through listed ETPs and derivatives products.
Distributions would be driven largely by options premiums, and the bank warned that a portion of payouts may be classified as return of capital, which means investors could effectively be receiving back part of their original investment rather than pure profit.
In recent trading, Bitcoin was at $74,116, down 0.44% in the last 24 hours and 14.7% year to date.