Goldman Sachs to Acquire Innovator Capital Management in $2 Billion Deal

According to Cointelegraph, Goldman Sachs has announced its agreement to purchase Innovator Capital Management for approximately $2 billion. This acquisition will integrate Innovator, known for its defined-outcome exchange-traded funds (ETFs) including a Bitcoin structured fund, into Goldman Sachs' asset management division. The transaction is expected to finalize in the second quarter of 2026, adding around $28 billion in assets under supervision to Goldman Sachs' Asset Management, which reported $3.45 trillion in assets at the end of the third quarter. Goldman Sachs aims to expand its offerings in active and defined-outcome ETFs through this acquisition. These funds utilize options to manage losses and determine the extent of asset gains investors can capture over a specified period. Innovator's QBF ETF, launched in February, employs FLEX options linked to Bitcoin ETFs or the Cboe Bitcoin US ETF Index to replicate Bitcoin's gains while capping quarterly losses at 20%. The fund currently has a 71% participation rate, designed to capture 71% of any positive Bitcoin price movement during the period. As of Friday, Innovator reported that QBF held approximately $19.3 million in market value. Goldman Sachs has shifted its stance on cryptocurrencies since 2020, when it deemed them unsuitable for client portfolios. The bank has since become more optimistic about crypto and blockchain technology. Between 2020 and 2024, Goldman Sachs participated in 18 investments in blockchain companies, positioning itself as a leading global supporter of early-stage companies in the sector. In the second quarter of 2024, the bank acquired roughly $419 million worth of Bitcoin ETF shares, according to CoinShares' analysis of quarterly 13F filings. In the last quarter of 2024, SEC filings revealed that Goldman Sachs purchased nearly $1.28 billion of iShares Bitcoin Trust and $288 million of Fidelity's Wise Origin Bitcoin Fund. The bank also increased its Ethereum ETF exposure to $476 million through BlackRock's and Fidelity's Ether products. Additionally, Goldman Sachs is reportedly developing a new entity to issue and trade tokenized financial instruments. In July, Cointelegraph reported that the bank was preparing to offer institutional clients access to tokenized money market funds with 24/7 settlement and blockchain-based ownership tracking.