Goldman Sachs to use options strategy for planned Bitcoin income ETF

The proposed fund would invest in Bitcoin ETPs and sell call options to generate income while limiting exposure to price swings.

Goldman Sachs has filed with the US Securities and Exchange Commission (SEC) to launch a Bitcoin-linked exchange-traded fund designed to generate income while limiting exposure to the cryptocurrency’s volatility, according to a preliminary prospectus dated April 14.

The proposed Goldman Sachs Bitcoin Premium Income ETF would aim to deliver current income alongside capital appreciation by investing primarily in spot Bitcoin exchange-traded products (ETPs) and related options, rather than holding Bitcoin (BTC) directly.

The fund would generate yield by selling call options on Bitcoin-linked ETPs, a strategy that can produce premium income but may cap upside in rising markets.

According to the filing, the actively managed fund would maintain at least 80% exposure to Bitcoin-linked assets and could allocate as much as 25% of its holdings through a Cayman Islands subsidiary, a structure commonly used to gain commodities exposure under the US Investment Company Act.

The fund expects to vary its options “overwrite” strategy — that is, selling call options against its holdings — between roughly 40% and 100% of its Bitcoin exposure depending on market conditions, and may distribute a significant portion of returns as income or return of capital.

It would gain exposure through a mix of spot Bitcoin ETPs and derivatives, combining direct holdings with options-based positions. The strategy may perform better in flat or moderately rising markets but could underperform during strong rallies as upside is capped.

Eric Balchunas, ETF analyst at Bloomberg, described the product as “Boomer Candy” in a post on X, suggesting the structure may appeal to investors seeking income and lower volatility over full upside exposure.

Separately, Goldman Chair and CEO David Solomon told analysts on Monday that the company last week closed on its acquisition of Innovator Capital Management, an issuer of defined outcome exchange-traded funds. The addition of Innovator’s 170 ETFs puts Goldman in the top 10 of global active ETF providers, Solomon said on the first-quarter earnings call.

Related: Bitcoin ETFs clock $291M outflows as BTC blasts past $74K

The filing from Goldman Sachs comes as asset managers move beyond basic price-tracking crypto funds, with more complex and actively managed strategies gaining traction across the ETF market.

In January, Bitwise Asset Management launched an actively managed ETF designed to hedge against currency debasement. The fund allocates across assets including Bitcoin, precious metals and mining equities, reflecting a broader push to integrate digital assets into diversified, macro-focused portfolios.

In March, T. Rowe Price amended its filing with the SEC for a proposed actively managed crypto ETF that would invest directly in digital assets. The updated prospectus outlines a portfolio that may include assets such as Bitcoin, Ethereum (ETH) and Solana (SOL).

Fund issuer 21Shares is also expanding into more sophisticated strategies. In February, the company launched a Europe-listed ETP tied to Strategy’s preferred stock (STRC), offering exposure to a yield-generating instrument linked to the company’s Bitcoin-focused capital strategy.

Speaking to Cointelegraph, 21Shares President Duncan Moir said the shift reflects broader demand for more advanced products, noting that crypto is “particularly well-suited to active management.”

According to a March report compiled by Morningstar and Goldman Sachs Asset Management, active ETFs held nearly $1.8 trillion in assets globally at the end of 2025, with flows significantly outpacing passive products.

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Source: CoinTelegraph