Goldman Sachs is set to acquire Innovator Capital Management for $2 billion, marking a significant expansion of its exchange-traded fund (ETF) offerings. The deal, announced on Monday, December 1, 2025, will bring Innovator's $28 billion in assets under supervision (AUS) and its expertise in defined outcome ETFs under Goldman's umbrella. The acquisition is expected to close in the second quarter of 2026, pending regulatory approval.
Innovator Capital Management is known for its pioneering work in defined outcome ETFs, also known as buffer ETFs. These ETFs utilize derivatives to achieve specific investment objectives, such as downside protection or yield enhancement, over a defined period. This acquisition will add 159 defined outcome ETFs to Goldman Sachs Asset Management's (GSAM) lineup.
One notable product in Innovator's suite is the Uncapped Bitcoin 20 Floor ETF (QBF). Launched in February 2025, QBF seeks to provide exposure to Bitcoin's price movements while limiting potential losses. The ETF aims to capture a percentage of Bitcoin's positive price returns while providing a floor that protects against a maximum loss of 20% over a three-month period. The fund achieves this by investing in FLEX Options that reference exchange-traded products holding Bitcoin or the Cboe Bitcoin U.S. ETF Index. It is important to note that the fund does not directly invest in Bitcoin.
The addition of Innovator's defined outcome ETFs, including QBF, aligns with Goldman Sachs' strategy to expand its presence in the active ETF market. David Solomon, Chairman and CEO of Goldman Sachs, stated that the acquisition will broaden access to "modern, world-class investment products" for investors. GSAM sees defined outcome ETFs as a key component of the rapidly growing active ETF market, which has experienced a compound annual growth rate of 66% since 2020.
The acquisition will also bring Innovator's team of over 60 employees, including its executive leadership, to Goldman Sachs Asset Management. Bruce Bond, Innovator's CEO, views the deal as a "pivotal milestone" for his company, citing Goldman Sachs' history of recognizing emerging trends in the asset management industry.
This move by Goldman Sachs reflects the increasing interest in Bitcoin and other crypto ETFs among institutional investors. In February 2025, it was reported that Goldman Sachs significantly increased its Bitcoin ETF holdings, including a substantial investment in BlackRock's iShares Bitcoin Trust (IBIT). As of March 31, 2025, Goldman Sachs was the largest institutional holder of IBIT, with over 30 million shares.
The acquisition of Innovator positions Goldman Sachs as a top-ten active ETF provider globally, managing over $75 billion in total assets under supervision. The firm aims to leverage Innovator's expertise to offer investors a wider range of sophisticated strategies with defined outcomes.
