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Goldman Sachs is strengthening its position in the ETF market with the acquisition of Innovator Capital Management. The American bank is paying approximately €1.7 billion in a mix of cash and stock. This move brings a fast-growing provider of actively managed ETFs into its portfolio, including funds that offer downside protection through options.
The acquisition also marks a notable moment: for the first time, a major Wall Street bank will gain direct access to a crypto-linked ETF product under its own management.
Acquisition Adds $28 Billion in Assets Under Management #
According to Goldman Sachs, the transaction adds approximately €24 billion in assets under management to its ETF division. Innovator is primarily known for its so-called buffer ETFs, which offer predefined outcomes. These products use option structures to capture some of the downside risk while capping the upside potential. The funds are aimed at investors who want market exposure but seek less volatility.
Innovator’s product lineup also includes a crypto-linked ETF. Through the acquisition, Goldman gains direct access to a crypto-related investment product for the first time.
CEO David Solomon calls actively managed ETFs “one of the fastest-growing segments in the public investment market” and says the bank will provide investors with “world-class, modern products” through Innovator.
The acquisition aligns with Goldman Sachs’ strategy to move away from consumer banking and focus more on wealth management. ETFs play a central role in this shift. The fact that Innovator already offers a crypto-linked product can be seen as a signal that traditional financial institutions are taking crypto-related ETFs more seriously. It remains unclear whether Goldman will launch new crypto ETFs in the short term.
Impact on the Crypto Market Remains Unclear for Now #
Although analysts may interpret the acquisition as a new step toward institutional adoption, the ultimate impact on the crypto market is uncertain. The deal does not change Goldman’s stance on direct crypto investments; it is primarily about structured products within the ETF domain.
However, the scale of the transaction shows that large financial players are actively taking positions in a market that has grown strongly in recent years. Whether this will lead to more inflow of institutional capital into crypto ETFs depends on future strategic choices and market conditions.
Meanwhile, it was also announced that another exchange-traded fund for XRP has been launched, while the available supply of the cryptocurrency has further decreased.