Goldman Sachs buys Innovator for $2B, adding a Bitcoin-linked ETF to lineup

Goldman Sachs just dropped $2B to acquire Innovator Capital Management — and with it, a Bitcoin-linked ETF that's about to become part of the banking giant's portfolio. This isn't just another acquisition; it's Goldman doubling down on crypto exposure through structured products.

The deal is set to close in Q2 2026 and brings $28B in assets under supervision to Goldman's Asset Management division, which already manages a staggering $3.45 trillion. Goldman says this move will expand their active and defined-outcome ETF business — funds that use options to cap losses while letting investors capture gains over fixed periods.

Here's the crypto play: Innovator's QBF ETF (launched February) uses FLEX options tied to Bitcoin ETFs or the Cboe Bitcoin US ETF Index. It's designed to capture 71% of Bitcoin's positive price moves while limiting quarterly losses to 20%. As of Friday, QBF held about $19.3M in market value.

Remember when Goldman dismissed crypto as unsuitable for clients back in 2020? Yeah, that's ancient history. The bank has since become one of the most active institutional players in blockchain, participating in 18 investments in blockchain companies from 2020-2024.

The numbers tell the story: In Q2 2024, Goldman bought approximately $419M worth of Bitcoin ETF shares. By Q4 2024, they'd stacked $1.28B of iShares Bitcoin Trust and $288M of Fidelity's Wise Origin Bitcoin Fund. They also boosted Ethereum ETF exposure to $476M through BlackRock and Fidelity products.

But Goldman isn't stopping at ETFs. They're reportedly building a new entity to issue and trade tokenized financial instruments. In July, Cointelegraph reported they're preparing to let institutional clients access tokenized money market funds with 24/7 settlement and blockchain-based ownership tracking.