Source: Fortune
Summary
Goldman Sachs has filed for a Bitcoin ETF, named “Bitcoin Premium Income ETF”, which will buy other exchange-traded products that hold Bitcoin and sell call options on those funds. The fund aims to create regular income from the sale of call positions and may outperform spot Bitcoin ETFs in modest or falling markets. Goldman Sachs has had a mixed relationship with Bitcoin in the past, but has become more involved in the crypto sector. The filing comes after Morgan Stanley’s Bitcoin ETF launch last week.
Our Reading
The numbers tell one story. Goldman Sachs is entering the Bitcoin ETF market with a product that promises regular income, but may lag behind spot Bitcoin ETFs during times of rapid price appreciation. The bank’s CEO, David Solomon, has expressed interest in tokenization and stablecoins. Goldman’s filing may indicate an opportunity to leapfrog current Bitcoin ETF leader BlackRock. The product’s structure, referred to as “Boomer Candy”, may appeal to clients who want Bitcoin exposure but are willing to give up some upside for lower downside and income.
Goldman Sachs is not new to the crypto sector, having been named an authorized participant on BlackRock’s Bitcoin ETF and holding several Bitcoin and crypto-linked ETFs and equities. The bank’s relationship with Bitcoin has been hot-and-cold in the past, but it has become more entwined with crypto.
Author: Evan Null
