The crypto industry is witnessing an increasing number of deals as investors show growing interest in digital assets.
FalconX, a leading player in the cryptocurrency trading world is all set to join forces with a major digital asset fund manager, as it plans to expand its offerings and bring new investment products to a wider audience.
Expanding Into Crypto ETFs and Structured Products
According to a report from The Wall Street Journal, FalconX has announced plans to acquire 21shares, one of the largest managers of exchange-traded funds (ETFs) dedicated to digital assets.
The newly combined entity plans to create crypto funds focused on derivatives and structured products. The deal will use a mix of cash and company shares, but the exact terms have not been made public.
The FalconX–21Shares deal has everyone talking on X. Market watchers note that, with this acquisition, crypto derivatives and structured products are about to go mainstream.
Deal Expected to Close by Year-End
FalconX is a leading digital asset prime broker and this deal will help it move beyond trading and liquidity services and start offering crypto ETFs.
21Shares will continue to operate independently after the acquisition, FalconX said in an internal memo seen by Bloomberg. The deal is expected to close by year-end. Russell Barlow will stay on as CEO of 21shares, and there are no planned changes to the structure or investment goals of its existing ETFs and ETPs.
The two companies plan to collaborate on creating investment products to meet growing demand from both institutional and retail investors for regulated digital assets. Earlier this year, FalconX bought Arbelos Markets, a trading firm focused on crypto derivatives.
IPO Plans Ahead
Founded in 2018 by Raghu Yarlagadda, FalconX has facilitated over $2 trillion in crypto trades for more than 2,000 institutional clients. It is also considering a potential IPO.
While 21shares oversees over $11 billion in assets through 55 exchange-traded products as of September. It gained recognition for launching one of the first U.S. spot Bitcoin ETFs in 2024 in partnership with Cathie Wood’s ARK Investment Management.
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Crypto ETFs In Spotlight
After the success of Bitcoin ETFs from giants like BlackRock and Fidelity, both traditional and crypto-focused asset managers are racing to launch funds that invest in smaller, riskier coins.
“Bitcoin flows are now happening through what we call traditional wrappers, and that’s a fundamental change in market structure,” said Yarlagadda. He added that joining forces will let the combined company bring new products to market even faster.
Adding to the momentum, the SEC introduced new rules in September that make it quicker and easier to launch crypto ETFs.
Major M&A in Crypto Markets
The FalconX-21Shares deal is part of a larger trend of mergers and acquisitions in the crypto space:
- Ripple recently acquired GTreasury, a corporate treasury software company, for $1 billion. This deal marks Ripple’s third big acquisition this year, after it bought Hidden Road and Rail earlier in 2025.
- Coinbase also agreed to buy Echo, a platform that helps crypto firms raise money on the blockchain, for about $375 million. Earlier it acquired derivatives exchange Deribit for $2.9 billion, expanding into the crypto options markets.
- Kraken is also expanding in U.S. derivatives, recently buying Small Exchange and earlier agreeing to acquire NinjaTrader for $1.5 billion.
These deals show a growing appetite for regulated crypto investment products and rising confidence in the sector.
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FAQs
FalconX, a major crypto broker, is acquiring 21Shares, a top digital asset ETF manager. The merger aims to create new crypto funds like derivatives for a wider audience of investors.
No, 21Shares will continue to operate independently. Its CEO, structure, and existing ETF investment goals will remain the same after the deal closes.
Beyond the 21Shares deal, FalconX is considering a potential Initial Public Offering (IPO) to become a publicly traded company in the future.
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