Goldman Sachs ETF Accelerator Winds Down: A Shift to Tidal’s Horizon?

The ETF landscape is in flux as goldman sachs announced on May 9, 2025, its decision to wind down the ETF Accelerator platform, transferring servicing responsibilities for approximately $5 billion in assets under management (AUM) to Tidal Financial Group. This strategic realignment marks a pivotal moment for institutional investors and ETF sponsors, signaling shifts in the competitive dynamics of the ETF ecosystem.

The Announcement and Its Timing

The move was disclosed via a press release from The 2023 ETF Series Trust and Trust II, which confirmed Tidal’s selection as the successor after a rigorous due diligence process. While Goldman’s exit was framed as a strategic pivot, the timing raises questions. The ETF Accelerator had been a cornerstone of Goldman’s asset management ambitions, offering a streamlined platform for launching ETFs. The shift to Tidal, a firm with deep ETF servicing expertise, suggests a retreat from direct operational oversight to focus on higher-margin advisory services—a common theme in Wall Street’s evolving business models.

Ask Aime: "Will Goldman's shift to Tidal affect my ETF investments?"

Investors watching GS’s stock will note that the announcement coincided with a period of relative stability, suggesting the move was anticipated or deemed non-material to Goldman’s broader financial health.

The Strategic Move Explained

Why now? The answer lies in both cost efficiency and specialization. Tidal’s reputation as a cost-effective, nimble ETF administrator positions it to better serve smaller or emerging sponsors seeking to enter the market. Goldman, meanwhile, can redirect resources to its core strengths: wealth management, mergers and acquisitions, and high-touch client services.

The $5 billion AUM in question represents a fraction of Goldman’s total assets, but its symbolic weight is significant. ETFs have become a $8.5 trillion industry globally, growing at a compound annual rate of 12% over the past decade. Institutions like Goldman are under pressure to either dominate or delegate in this arena.

Implications for Investors

For ETF investors, the transition is largely a non-event in the short term. The press release emphasized continuity, and Tidal’s track record suggests it can maintain operational standards. However, long-term investors should monitor two key factors:
1. Cost Structures: Will Tidal’s fees be lower or higher than Goldman’s? Lower costs could attract more sponsors, boosting Tidal’s market share.
2. Innovation Pipeline: Goldman’s exit might slow the launch of new ETFs on the Accelerator platform, potentially diverting capital to competing platforms like Fidelity’s or Schwab’s.

This data underscores the industry’s relentless growth—growth that Tidal aims to capture.

Risks and Opportunities

The transition isn’t without risks. A sudden exodus of sponsors or assets could destabilize Tidal’s onboarding process, though the staggered handover (pending final board approval) mitigates this. For Goldman, the reputational risk of exiting a platform it once championed remains, but its broader client relationships likely outweigh ETF servicing in terms of priority.

On the opportunity side, Tidal’s specialization could accelerate ETF innovation, particularly in thematic or ESG-focused products. Meanwhile, investors in Goldman’s broader offerings should see minimal disruption but may benefit from the firm’s refocused strategy.

Conclusion: A Calculated Retreat or a Missed Opportunity?

Goldman’s decision to exit the ETF Accelerator is a calculated move to prioritize high-margin businesses while offloading operational costs to a specialist partner. With Tidal’s proven track record in ETF servicing and the $5 billion in assets secured, the transition appears well-managed.

The broader ETF market, however, faces a crossroads. As passive investing continues to dominate—ETFs now account for over 40% of U.S. equity trading volume—the battle for cost leadership and sponsor loyalty will intensify. Tidal’s ascent highlights that even legacy institutions like Goldman must cede ground to leaner rivals in commoditized segments.

For investors, the takeaway is clear: the ETF sector’s growth remains robust, but its infrastructure is in flux. Those aligned with agile administrators like Tidal—or those willing to bet on Goldman’s core strengths—stand to benefit. The ETF era isn’t ending—it’s just evolving, and adaptability will be the key to outperforming.