CMC News

Goldman Sachs Acquires Innovator for $2B, Adds Bitcoin ETF

#GoldmanSachs has agreed to acquire Innovator Capital Management for roughly $2 billion, bringing the issuer of defined-outcome exchange-traded funds under its asset management umbrella. The transaction includes a #Bitcoin-linked structured fund, marking Goldman's deeper entry into crypto-linked investment products.

The deal, slated to close in the second quarter of 2026, will bring about $28 billion in additional assets under supervision to Goldman Sachs Asset Management. The investment bank reported $3.45 trillion in assets under supervision at the end of the third quarter.

Goldman stated the purchase will broaden its plans for active and defined-outcome #ETFs. A defined-outcome fund uses options to limit losses and set how much of an asset's gains investors can capture over a fixed period.

Launched in February, Innovator's QBF ETF uses FLEX options referencing $BTC ETFs or the Cboe Bitcoin U.S. ETF Index to mirror part of Bitcoin's gains while capping quarterly losses at 20%. The fund's current 71% participation rate means it captures 71% of any positive $BTC price move over that period.

As of Friday, Innovator reported that QBF held approximately $19.3 million in market value. The acquisition expands Goldman's defined-outcome ETF business and strengthens its position in #cryptocurrency-linked investment products for institutional and retail clients.

After dismissing cryptocurrencies as unsuitable for client portfolios in 2020, Goldman Sachs has become increasingly bullish on crypto and #blockchain technology. From 2020 to 2024, the investment bank participated in 18 investments in blockchain companies, placing it among the most active global backers of early-stage sector firms.

In the second quarter of 2024, Goldman bought approximately $419 million worth of $BTC ETF shares.