"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."
"Goldman has long had a hot-and-cold relationship with Bitcoin. In 2020, leaked slides showed the bank saying Bitcoin's appreciation was based primarily on people being willing to pay more for it, called it a conduit for illegal activity, and likened it to Dutch tulip mania."
"As Bitcoin and crypto have become more firmly embedded in the financial sector, Goldman has become more entwined with crypto. The bank was named an authorized participant on BlackRock's Bitcoin ETF, and regulatory filings show Goldman holds a number of Bitcoin and crypto-linked ETFs and equities."
"With the filing, Goldman Sachs becomes the latest major U.S. bank to make a foray into proprietary Bitcoin funds, following Morgan Stanley's Bitcoin ETF launch last week."
Goldman Sachs has announced plans for a Bitcoin Premium Income ETF, which will invest in exchange-traded products holding Bitcoin and sell call options on those funds. This strategy aims to generate regular income and may outperform traditional spot Bitcoin ETFs in modest or declining markets. However, it may underperform during rapid Bitcoin price increases. This marks Goldman's first Bitcoin ETF filing, joining other financial institutions like Grayscale and BlackRock in offering similar products. The bank's evolving stance on Bitcoin reflects its deeper involvement in the crypto sector.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]