A remarkable merger came to the fore at a time when corporate investments in the cryptocurrency market were gaining momentum. The Wall Street JournalAccording to the corporate cryptocurrency trading company FalconXETF manager decided to purchase 21Shares. Company executives announced that the new structure to be formed after the merger will develop innovative cryptocurrency investment tools focusing on derivative products and structured funds. The acquisition will be financed through cash and stock, but financial details of the deal were not shared.
FalconX’s Growth Strategy
in 2018 Raghu YarlagaddaFalconX, founded by , has mediated over $2 trillion in cryptocurrency transactions to date. The company serves more than 2,000 institutional customers and has become a major liquidity provider on a global scale. FalconX reached a valuation level of $8 billion by collecting $150 million in venture capital investment in 2022. Yarlagadda stated that after the merger, the company will be positioned closer to the capital markets and that they are considering the option of going public.
The plan to acquire 21Shares is considered as part of FalconX’s strategy to step into the field of investment products and fund management, beyond being a platform that only offers trading infrastructure. The company is among institutional investors cryptocurrency It aims to offer more sophisticated solutions to the increase in demand through derivative products.
21SharesFounded in 2018, it has become one of the fastest growing cryptocurrency management companies in Europe. The company has 55 publicly traded exchange-traded products and had assets under management exceeding $11 billion as of September. His most remarkable achievement is Cathie WoodThe first spot Bitcoin developed in partnership with ARK Investment Management. 
$108,190.87 It is due to launch one of its ETFs in the US in 2024.
Acquisition of FalconX leverages 21Shares’ regulatory experience and ETF It has the potential to combine its knowledge with its own corporate trading power. Thus, the combination of the two companies is expected to increase the product diversity of cryptocurrencies in the financial sector and strengthen the bridge between traditional finance and the cryptocurrency market.
