Core Insights - Goldman Sachs has announced the acquisition of Innovator Capital Management, adding $28 billion in assets under supervision (AUS) through 159 defined outcome ETFs as of September 2025 [1][5] - The acquisition aims to enhance Goldman Sachs' active ETF offerings amid increasing interest in active management strategies [1][2] - Defined outcome ETFs have shown significant growth, with a 66% compound annual growth rate (CAGR) since 2020, contributing to the overall active ETF market growth of 47% CAGR [3] Company Strategy - Bryon Lake, chief transformation officer at Goldman Sachs Asset Management, emphasized the early stage of innovation in the defined outcome space and the growth opportunities it presents [2] - The addition of Innovator's product range is expected to be a key catalyst for Goldman Sachs, particularly in appealing to advisors focused on risk mitigation for clients [2][5] - The acquisition positions Goldman Sachs among the top ten active ETF managers globally, managing over 215 ETF strategies and more than $75 billion in global AUS [5] Market Trends - The global active ETF market has reached approximately $1.6 trillion in assets under management (AUM) [3] - Defined outcome ETFs, such as the Innovator U.S. Equity Power Buffer ETF – January (PJAN), utilize derivatives and options-based strategies to provide downside protection and enhanced yields for investors [4]

Core Viewpoint - The transformation of brokerage asset management collective products into public funds is accelerating as the deadline for regulatory compliance approaches, with an increasing number of products undergoing this transition [1][3]. Group 1: Regulatory Changes and Compliance - The management of the "Galaxy Mercury Juyi Short-term Bond Collective Asset Management Plan" has been transferred from Galaxy Jin Hui Securities Asset Management to Xinda Australia Fund, marking a significant step in the public fund transformation process [3]. - The deadline for the transformation of brokerage asset management collective products into public funds is set for the end of 2025, following regulatory requirements established in November 2018 [3][4]. - If the original management company does not obtain public fund qualifications, the products will be transferred to affiliated public fund companies or third-party public fund companies, or they may be terminated [3]. Group 2: Trends in Management Transfers - The first instance of a brokerage asset management product transitioning to public fund management occurred in August 2023, when the "Fangzheng Jin Lifang One-Year Holding Mixed Collective Asset Management Plan" was transferred to its affiliated public fund company [4]. - Several brokerage firms have transferred their collective products to affiliated public fund companies, such as CITIC Securities and GF Securities, while some firms are seeking public fund licenses to facilitate this transformation [4][6]. - Despite some firms withdrawing their applications for public fund licenses, the approval process for these applications has not been suspended [5][6]. Group 3: Benefits of Public Fund Transformation - The transformation of brokerage asset management collective products into public funds is expected to optimize resources and promote differentiated development within the industry [7]. - Public fund transformation will enhance the legal status and transparency of operations, allowing for more flexible and proactive performance marketing [7]. - The entry threshold for clients will significantly decrease post-transformation, potentially increasing the scale of assets under management and improving investment management standards [7].

Core Insights - BlackRock has rapidly established itself as a leader in the cryptocurrency ETF market, particularly with its iShares Bitcoin Trust (IBIT), which has become the company's top revenue generator since the approval of spot Bitcoin ETFs in January 2024 [1][5][7] - The combined allocations in BlackRock's Bitcoin ETFs, including IBIT and Brazil's IBIT39, have approached $100 billion, indicating a significant shift in investor behavior towards regulated cryptocurrency exposure [2][3][7] - As of September 30, 2025, BlackRock's assets under management (AUM) in digital assets reached $104 billion, reflecting a growing acceptance of cryptocurrencies in diversified investment portfolios [4][5][7] Investment Behavior - Traditional market participants, such as hedge funds and corporate treasuries, are increasingly seeking regulated exposure to Bitcoin, favoring products that offer transparency and liquidity [3] - The rapid inflows into IBIT demonstrate a major change in investment strategies, with BlackRock's reputation and distribution network providing a competitive edge [3][4] Financial Performance - The revenue generated from BlackRock's ETFs is primarily driven by asset growth and management fees, with IBIT outperforming many of the company's established equity and fixed-income funds [4][7] - BlackRock has achieved a record AUM of $13.46 trillion as of September 30, 2025, marking it as the first asset manager to surpass $13 trillion [5] Market Position - BlackRock's shares have increased by 7.1% over the past six months, contrasting with a 5.8% decline in the industry [6] - The company's leadership in the ETF space is expected to influence the future of crypto-driven financial innovation, positioning digital-asset investment products as central to global asset management strategies [5]

You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. (Bloomberg) -- Goldman Sachs Group Inc. will pay $2 billion to buy Innovator Capital Management, a deal that combines the bank with an issuer of a relatively new type of exchange-traded fund that has caught the attention and ire of some on Wall Street. Wheaton, Illinois-based Innovator — which has over $28 billion of assets under supervision across more than 150 ETFs — specializes in defined-out ...

Core Viewpoint - Goldman Sachs Group Inc. is acquiring Innovator Capital Management for $2 billion, aiming to enhance its position in the defined-outcome ETF market, which has gained popularity among financial advisers and investors seeking to mitigate downside risk while capping upside potential [1][2]. Group 1: Acquisition Details - The acquisition will combine Goldman Sachs with Innovator, which manages over $28 billion across more than 150 ETFs, specializing in defined-outcome ETFs [1][2]. - The deal is expected to close in the second quarter of 2026, pending regulatory approvals [7]. Group 2: Market Context - Defined-outcome ETFs, also known as "buffer funds," have seen increased interest as investors look for safer alternatives amid market volatility, with approximately $11.4 billion invested in structured outcome products this year, including $4.1 billion in Innovator's offerings [4]. - The structured outcome ETF category has grown from under $60 billion at the end of 2024 to roughly $76 billion currently [5]. Group 3: Strategic Implications - Following the acquisition, Goldman Sachs Asset Management's assets under management in ETFs will increase from $51 billion to $79 billion, positioning the firm among the top 10 largest active issuers [6]. - Innovator's team of over 60 employees will join Goldman's wealth and ETF teams, enhancing the firm's capabilities in this growing market [7].

Amanda Lynam, head of macro credit research at BlackRock, sees a scenario for liquid and private corporate credit markets of "dispersion, but not wide-spread market disruption." ...

Lawrence Fuller has been managing portfolios for individual investors for 30 years, starting his career at Merrill Lynch in 1993 and working in the same capacity with several other Wall Street firms before realizing his long-term goal of complete independence when he founded Fuller Asset Management. He also manages the Focused Growth portfolio on the new fintech platform called Dub, which is the first copy-trading platform approved by securities regulators in the US, allowing retail investors to copy the po ...

Core Insights - Michael Gray has extensive experience in capital markets and fixed income asset management, having founded Gray Capital Management LLC and previously served as Head of Taxable Fixed Income at Fidelity Investments [1] Group 1 - Michael Gray holds an MBA in Finance from Wharton and a BA in Economics from Union College, indicating a strong educational background in finance and economics [1]

Core Viewpoint - Goldman Sachs has agreed to acquire Innovator Capital Management for approximately $2 billion to enhance its asset management division and expand its ETF offerings in a rapidly growing market [1][2]. Group 1: Acquisition Details - The acquisition is expected to close in the second quarter of 2026 [1]. - Innovator Capital Management manages $28 billion in assets across 159 ETFs as of September 30 [2]. - Innovator's 60-plus employees will join Goldman Sachs' asset management division post-acquisition [3]. Group 2: Strategic Importance - Defined-outcome ETFs utilize contracts, including options, to mitigate downside risks or provide targeted gains over specific time periods [2]. - Goldman Sachs aims to enhance access to modern investment products through this acquisition, as stated by CEO David Solomon [2]. - The acquisition aligns with Goldman Sachs' strategy to prioritize asset and wealth management, following a shift away from consumer banking [2].

Core Viewpoint - Tom Lee remains optimistic about Ethereum, suggesting that the increasing involvement of major financial institutions could support his long-term price target of $9,000 for the cryptocurrency [1][4]. Institutional Adoption - Major financial institutions, referred to as the "venerable and elite of Wall Street," are increasingly building on the Ethereum blockchain, with Amundi, Europe's largest asset manager, launching a tokenized fund on Ethereum [2][5]. - The trend indicates a broader institutional shift towards public blockchains, as asset managers explore tokenization amid growing regulatory and investor acceptance of digital infrastructure [2]. Significance of Amundi's Move - James Smith from the Ethereum Foundation highlighted the importance of Amundi's deployment on Ethereum, noting that the asset manager, with €2.2 trillion in assets, surpasses major U.S. firms like Fidelity and PIMCO [3]. - The choice of public Ethereum over private chains by institutions like BlackRock, Franklin Templeton, and Amundi signifies a growing preference for Ethereum in real-world asset tokenization [3]. Price Forecast - Despite current market challenges, Tom Lee predicts that Ethereum's price could rebound significantly, estimating a range of $7,000 to $9,000 by the end of January, even as it trades around $2,843, reflecting a decrease of over 5% [4][6].