Goldman Sachs' $2 billion acquisition of an ETF issuer is both beneficial and detrimental to the cryptocurrency industry

According to CoinDesk, Goldman Sachs' acquisition of ETF issuer Innovator Capital for approximately $2 billion could shake the entire cryptocurrency industry, particularly in the ETF space.

When the deal was announced, Goldman Sachs CEO David Solomon stated, "Active ETFs are dynamic, transformative, and one of the fastest-growing segments in today's public investment landscape. By acquiring Innovator, Goldman Sachs will expand its coverage of modern, world-class investment products."

Innovator CEO Bruce Bond remarked, "Goldman Sachs has a long history of insight into emerging trends and significant directional shifts in the asset management industry." These statements clearly indicate Goldman Sachs' perspective on the development of the ETF industry: to create a truly "modern" platform based on investor demand, investing in emerging trends. This could ultimately include digital assets.

It is worth noting that Goldman Sachs is already a major authorized participant in spot Bitcoin ETFs, including those from BlackRock and Grayscale, facilitating their daily trading. While Innovator primarily focuses on target income ETFs, it has addressed the growing demand for cryptocurrency investments through structured ETFs that provide investors with Bitcoin exposure via risk management strategies.

However, critics argue that while Wall Street's involvement in cryptocurrency ETFs may bring scale and liquidity, it could deviate from the original ideals of cryptocurrency, and ETFs should not be the ultimate goal.