Goldman Sachs has filed with the US Securities and Exchange Commission (SEC) to launch its Bitcoin Premium Income ETF, which is designed to generate income while reducing exposure to Bitcoin's volatility. According to the preliminary prospectus dated April 14, the ETF will primarily invest in spot Bitcoin exchange-traded products (ETPs) and utilize options strategies, specifically selling call options on these ETPs to generate yield. The fund will maintain at least 80% exposure to Bitcoin-linked assets and may allocate up to 25% of its holdings through a Cayman Islands subsidiary, a common structure for gaining commodities exposure under the US Investment Company Act.

The ETF's options strategy will vary between 40% and 100% of its Bitcoin exposure, depending on market conditions, and it may distribute a significant portion of returns as income or capital returns. Eric Balchunas, an ETF analyst at Bloomberg, referred to the product as “Boomer Candy,” indicating it may attract investors looking for income with lower volatility rather than full upside exposure. This filing aligns with a broader trend among asset managers moving towards more complex, actively managed crypto funds, as seen with other recent ETF launches. Goldman Sachs is also expanding its ETF portfolio following its acquisition of Innovator Capital Management, which adds 170 ETFs to its offerings, positioning the firm among the top 10 global active ETF providers.