Bitcoin Welcomes Goldman Sachs
ByteFolio Issue 205;
Bitcoin鈥檚 ByteTrend Score holds a 3. The price is comfortably above its 30-day moving average and holding the max line (blue). The 200-day moving average is still falling but is now 15% below, up from 39% below in February.
Bitcoin
The Morgan Stanley Bitcoin ETF raised $86m in its first week, and now we have news that Goldman Sachs will soon launch the Goldman Sachs Bitcoin Premium Income ETF. But before I get into that, a quick view on the macro set-up.
Stocks have rallied in April, and Bitcoin has held up well through the Iran Crisis. Since October, Bitcoin鈥檚 link with software stocks has been pushing the bear case. Having been in a weaker position in February, it is pleasing to see Bitcoin decouple in recent weeks (green).
Bitcoin vs Software
Meanwhile, the Nadaq has been much stronger. Bitcoin is not leading, but at least it is holding up since February. The Nasdaq has been held back by software, but buoyed by hardware linked to the AI boom, which continues at pace.
Bitcoin vs Nasdaq
The crypto bull case comes from many angles, but the natural linkage with AI should not be underestimated. As AI starts handling money, there is no alternative but crypto. This is why firms such as Morgan Stanley and Goldman Sachs are coming on board.
The Goldman Sachs Bitcoin Premium Income ETF (proposed name) is a new actively managed exchange-traded fund that Goldman Sachs filed with the SEC on April 14, 2026. It marks the bank's first direct foray into issuing its own Bitcoin-linked ETF product. Unlike spot Bitcoin ETFs, which hold physical BTC, this seeks to provide indirect exposure to Bitcoin's price movements while generating regular income.
Under normal circumstances, the fund allocates at least 80% of its net assets to investments providing Bitcoin exposure. This primarily includes shares of existing spot Bitcoin ETFs, options on spot Bitcoin ETFs, and options on Bitcoin ETF indices. It is actively managed, and the manager will dynamically adjust the level of options overwriting, typically covering 40% to 100% of the fund's Bitcoin exposure, depending on market conditions.
It is basically a covered call strategy whereby the fund is exposed to the Bitcoin price and then sells call options, classifying those premiums as yield. The fund will therefore lag behind in major rallies, but cushion major falls. In the hands of a good manager, this could work out well.
It is progress in the sense that Wall Street is engaged.
