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.