Goldman Sachs Makes Money Without Buying Bitcoin…What is This New ETF?

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Goldman Sachs is advancing institutional investment strategies by pursuing a new ETF that targets 'cash flow' rather than Bitcoin's rise.

According to investment specialized media FXStreet on April 15 (local time), Goldman Sachs submitted registration documents for the 'Goldman Sachs Bitcoin Premium Income ETF' to the U.S. Securities and Exchange Commission (SEC). The core of this product is a structure that generates profits through Bitcoin-linked assets without directly investing in Bitcoin (BTC).

This ETF invests at least 80% of its net assets in Bitcoin-related financial products. Investment targets include Bitcoin spot ETFs (ETPs), options on such products, and index options, with some potentially being indirectly incorporated through Cayman Islands subsidiaries. This structure is a mechanism to bypass U.S. regulatory restrictions and allow for flexible product design.

The revenue structure is an options-based strategy. The fund utilizes a covered call strategy, selling call options on Bitcoin-related products to secure premiums, which are then distributed to investors as monthly income. The option overlay ratio can range from 40% to a maximum of 100% depending on market conditions.

This strategy converts Bitcoin volatility into profit but limits upside potential. While it can outperform direct investment with premium income in sideways or moderately rising price environments, a strong bull market could limit returns.

Bloomberg ETF analyst Eric Balchunas evaluated that this product was designed considering commodity regulatory limits. He explained that the ETF targets investor demand for Bitcoin exposure while reducing volatility. Meanwhile, Bitcoin is currently trading around $74,200, showing a slight decline during the day.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*