Goldman Sachs trades Bitcoin upside for monthly cash distributions
LA
Lennox Ashford
Bitcoin ETF · Apr 17, 2026
Source: DojiDoji Data Terminal
Investors in the proposed Bitcoin Premium Income ETF will receive monthly cash distributions in exchange for capping their potential gains during Bitcoin rallies. The fund generates this income by selling call options on its Bitcoin positions, collecting premiums that are then distributed to investors. To achieve this, the fund will invest at least 80% of net assets in products providing Bitcoin exposure, such as spot Bitcoin ETFs and options on Bitcoin ETF indices.
Goldman Sachs filed with the SEC on April 14 to launch the fund, its first proprietary Bitcoin product. The fund will maintain a hedge coverage between 40% and 40% and 100% of its Bitcoin exposure, adjusting the overwrite level based on market conditions. To comply with the Investment Company Act of 1940, the fund will route its Bitcoin exposure through a Cayman Islands subsidiary, which can hold up to 25% of assets.
Goldman Sachs currently holds over $1 billion in third-party spot Bitcoin ETFs from issuers like BlackRock and Fidelity. By manufacturing its own yield-focused product, the firm captures fee revenue it currently sends to other issuers.