US financial giant Goldman Sachs is looking to launch a unique Bitcoin ETF.
Goldman Sachs ETF Trust has filed for SEC approval of the Goldman Sachs Bitcoin Premium Income ETF.
The fund is designed to deliver steady income to investors while reducing upside exposure to Bitcoin’s price.
The ETF will invest at least 80% of its net assets in instruments that provide exposure to Bitcoin, and it will not hold BTC directly.
These include Spot Bitcoin ETPs, options on Spot Bitcoin ETPs and options on Bitcoin ETP Indices.
To create income, the fund plans a dynamic options overwrite strategy, selling call options on bitcoin-related ETPs and collecting premiums.
The overwrite level will range from 40% to 100% of its bitcoin exposure depending on market conditions.
The fund would face significant bitcoin price volatility and other risks, including limited upside from the call-writing approach.
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