FalconX Acquires 21Shares to Expand Crypto ETF Offerings
- FalconX expands into crypto ETFs and derivatives through its acquisition of 21Shares.
- 21Shares gains access to FalconX’s global trading infrastructure and institutional network.
- The merger aims to accelerate innovation in derivative-based and structured crypto products.
FalconX, a crypto trading firm based in the US serving institutional clients, has agreed to acquire 21Shares, a major provider of crypto exchange-traded products (ETPs). The deal is expected to combine FalconX’s prime brokerage and derivatives infrastructure with 21Shares’ deep knowledge of crypto fund management and exchange-traded products. The financial terms of the transaction are not disclosed.
The merger will allow the combined entity to launch derivative and structured crypto investment funds. These products aim to surpass the existing spot ETPs, providing institutional and retail investors with diversified platforms to gain exposure to digital assets through regulated investment vehicles. Company officials from both firms said that the transaction will be financed with a mix of cash and equity.
Founded in 2018, 21Shares has become a leading crypto-focused asset manager. It oversees more than $11 billion through 55 listed products, including spot Bitcoin and Ethereum ETFs, as well as various token baskets. The merger provides FalconX with immediate access to 21Shares’ product development and global distribution capabilities.
FalconX Strengthens Institutional Offerings
FalconX’s acquisition of 21Shares strengthens its recent growth in institutional derivatives trading. The company has launched a 24/7 OTC options platform, enabling trading in Bitcoin, Ethereum, Solana, and other top cryptocurrencies. This development seeks to improve liquidity options and expand services for institutional clients.
According to Raghu Yarlagadda, co-founder and CEO of FalconX, the merger signifies a paradigm shift in integrating digital assets into conventional finance. He observed that Bitcoin and other flows of digital assets are increasingly “using traditional wrappers,” suggesting a market structure that is maturing. The collaboration with 21Shares will accelerate FalconX’s ability to launch regulated and innovative investment products at a faster pace.
For FalconX, the acquisition is the third major deal of 2025. Earlier this year, the firm bought crypto derivatives platform Arbelos Markets and took a majority stake in Monarq Asset Management. These actions highlight its strategy to build a comprehensive ecosystem, connecting institutional finance and digital asset trading infrastructure.
Related: 21Shares Launches AFET and ARAY Crypto ETPs in Europe
Expanding Access to Regulated Crypto Investment Products
The merger takes place amid rapid growth in the cryptocurrency ETF sector. Data from Solid Intel indicates that since the U.S. Securities and Exchange Commission reduced ETF review times from 270 days to 75 days, asset managers have filed 155 new applications for 35 digital assets. The change has expedited the institutional adoption and investor interest in crypto investment vehicles provided under a regulatory framework.
21Shares, which partnered with ARK Investment Management to create the ARK 21Shares Bitcoin ETF, remains a major player in this area. The ARK 21Shares Bitcoin ETF has a cumulative net inflow of more than $2.2 billion, making it one of the five most prominent U.S. spot Bitcoin ETFs in terms of net inflows. These findings reflect an increasing level of investor confidence in regulated digital asset products.
Following the acquisition, 21Shares will continue to operate independently under the FalconX holding company. CEO Russell Barlow stated that existing products in Europe and the United States will remain unchanged. He also noted that the merger would enable the firm to “move faster” in developing new crypto-based investment strategies for a global audience.
In addition, the partnership between FalconX and 21Shares aims to enhance their competitive position within the rapidly growing digital asset industry. This partnership brings together trading, liquidity, and product management to offer investors in regulated markets a wider range of crypto-backed ETFs, derivatives, and structured financial products.
