Another Wall Street Pivot: Goldman Sachs To Acquire Bitcoin ETF Issuer Innovator Capital In $2 Billion Deal

In another (bold) move towards institutional acceptance of digital assets (during an obviously turbulent phase), Goldman Sachs has announced a $2 billion acquisition of Innovator Capital Management. What does this move mean? It will essentially help the Wall Street giant expand its presence in the crypto ETF market.

In a 1 December 2025 announcement, Goldman Sachs said that the acquisition will add $28 billion in assets under supervision (AUS) to Goldman Sachs Asset Management’s broad range of custom portfolio solutions and active ETF capabilities.

The deal is expected to close in the second quarter of 2026. It will bring 159 ETFs into Goldman Sachs’ AUM.

More importantly, this deal will put Goldman Sachs among the top 10 ETF providers globally. Can this deal also accelerate innovation in the crypto ETF space?

Bryon Lake, Goldman Sachs Asset Management partner, explains why the company is buying Innovator Capital. Innovator specializes in defined-outcome ETFs, which seek to limit investors’ downside risk in exchange for capping upside potential https://t.co/bacD9Kp7Sn pic.twitter.com/Nc33GVCWTA

— Bloomberg TV (@BloombergTV) December 1, 2025

Interestingly, by the end of 2024, the bank held over $2 billion in Bitcoin and Ethereum ETFs.

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Goldman Sachs CEO Says “Active ETFs Are Dynamic, Transformative”

Commenting on the acquisition, Goldman Sachs Chairman and CEO David Solomon said, “Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today’s public investment landscape. By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products for investor portfolios.”

The Illinois based Innovator Capital Management is known for a specialized category of ETFs that use options strategies to limit downside risk while capping upside potential.

“Innovator’s reputation for innovation and leadership in defined outcome solutions complements our mission to enhance the client experience with sophisticated strategies that seek to deliver targeted, defined outcomes for investors,” Solomon added.

Notably, just five years ago, Goldman Sachs openly advised clients against investing in crypto. Interestingly, between 2020 and 2024, the bank engaged in nearly 18 investments in blockchain companies. But Goldman Sachs is not the only one with a changed tone towards crypto.

EXPLORE: Wall Street Pivots: Morgan Stanley Officially Recommends Exposure To Crypto, Especially Bitcoin

Citi Plans To Launch Crypto Custody Services In 2026, Morgan Stanley Officially Recommends Exposure To Crypto

Meanwhile, Morgan Stanley, has advised clients to allocate 2-4% of their investment portfolios to crypto. With a strong spotlight on Bitcoin as a “scarce asset, akin to digital gold,” Morgan Stanley’s suggestion is a pivot in Wall Street’s stance toward digital assets.

On 5 October 2025, Morgan Stanley’s Global Investment Committee (GIC) formally released a set of portfolio allocation guidelines, wherein “opportunistic growth portfolios were suggested up to 4% crypto allocation.” Meanwhile, Bitcoin price (BTC) climbed to a new all-time high overnight, reaching about $125,700 during Sunday’s Asia session before pulling back to the low $123,000 range.

Citigroup has also announced plans to launch digital asset custody services by 2026.

Citi Bank Global Head of Partnerships and Innovation, Biswarup Chatterjee, confirmed the bank’s intentions to enter the crypto space with custody services, which have been in development for two to three years now, according to a CNBC report. This move will enable the bank to hold Bitcoin and Ethereum on behalf of asset managers and other institutional clients.

Key Takeaways

At the heart of this acquisition’s significance for cryptocurrency investors is Innovator’s QBF ETF (Innovator Uncapped Bitcoin 20 Floor ETF), launched in February 2025. This innovative product provides structured exposure to Bitcoin through FLEX options linked to Bitcoin ETFs or the Cboe US Bitcoin ETF Index.

The QBF ETF’s strategy aims to capture a portion of Bitcoin’s price movements while limiting quarterly losses to 20%. Under its current structure, investors can participate in 71% of any upward price movement over a three-month period. As of late November 2025, the fund’s market value stood at approximately $19.3 million.