Goldman Sachs to Acquire Bitcoin ETF Issuer Innovator in $2B Deal

Goldman Sachs has announced its plan to acquire Innovator Capital Management for approximately $2 billion. This move will enhance Goldman Sachs' asset management division by incorporating a provider of defined-outcome exchange-traded funds (ETFs), which includes a product linked to Bitcoin.

Key Takeaways:

Goldman Sachs is expanding its range of Bitcoin-linked and defined-outcome ETFs through the acquisition.
The deal will contribute nearly $28 billion to Goldman Sachs' asset management portfolio.
The bank is intensifying its involvement in the cryptocurrency space, particularly through ETFs and tokenized funds.

The acquisition is expected to finalize in the second quarter of 2026 and will add around $28 billion in assets under management to Goldman Sachs' asset management sector. By the end of the third quarter, this division reported overseeing $3.45 trillion in assets.

Goldman Sachs to Acquire Bitcoin ETF Issuer Innovator in $2B Deal

Goldman to Enhance Defined-Outcome ETFs with Options Strategy

Goldman Sachs highlighted that this purchase will augment its selection of active and defined-outcome ETFs, which employ options strategies to manage risk by limiting potential losses while capping how much of an asset's upside can be captured over specified timeframes.

Innovator Capital Management has gained traction within the cryptocurrency community due to its structured products that provide Bitcoin exposure. In February, the company launched its QBF ETF, which utilizes FLEX options tied to Bitcoin ETFs or the Cboe Bitcoin US ETF Index. This product allows investors to track a portion of Bitcoin's performance while restricting quarterly losses to 20%.

Currently, this ETF is designed to enable investors to capture 71% of any positive price movement over a quarter. As of last Friday, its market value stood at approximately $19.3 million, according to Innovator.

This acquisition underscores the rapid transformation of Goldman Sachs' approach toward digital assets. Back in 2020, the bank had cautioned clients against investing in cryptocurrencies. However, since then, they have progressively increased their engagement in the sector. From 2020 to 2024, Goldman Sachs has invested in 18 blockchain firms, positioning itself as one of the most active global investors in early-stage cryptocurrency ventures.

Goldman Sachs' exposure through ETFs has also expanded. In the second quarter of 2024, the bank acquired roughly $419 million in Bitcoin ETF shares, based on CoinShares' analysis of regulatory filings. By the fourth quarter, disclosures indicated nearly $1.28 billion in the iShares Bitcoin Trust and $288 million in Fidelity’s Wise Origin Bitcoin Fund. Furthermore, Goldman has increased its Ethereum ETF holdings to $476 million.

In July, Goldman Sachs, in collaboration with Bank of New York Mellon, launched a system that enables institutional clients to access tokenized money market funds. This service targets a $7.1 trillion market and utilizes Goldman’s blockchain platform to maintain records of fund ownership, integrating with BNY's custody services.

Vanguard Opens Access to Crypto-Linked ETFs

In a similar shift, Vanguard has opened its US brokerage platform to crypto-focused ETFs and mutual funds, marking an end to its long-standing resistance to digital assets. According to Bloomberg, clients can now trade third-party funds that hold Bitcoin, Ether, XRP, and Solana, as long as these products conform to regulatory standards.

This development is significant due to Vanguard’s size; managing approximately $11 trillion and serving over 50 million clients means that millions of investors who previously faced barriers in purchasing spot Bitcoin ETFs through their Vanguard accounts now have direct access to crypto-linked products. Vanguard will classify these funds in the same manner as other "non-core" assets, such as gold.