Falconx to Acquire 21shares Amid Crypto ETF Boom

CN
7 hours ago

Crypto trading powerhouse Falconx is acquiring 21shares, an issuer of digital asset exchange-traded funds (ETFs), as it pushes deeper into the regulated investment space. According to the Wall Street Journal, the acquisition, financed through a mix of cash and equity, brings together Falconx’s institutional trading infrastructure and 21shares’ established ETF expertise to create a new force in crypto finance.

The merged firm plans to develop a new generation of crypto funds built around derivatives and structured products, according to company executives. While financial terms weren’t disclosed, the deal reflects growing investor appetite for traditional investment vehicles that offer digital asset exposure.

Falconx, co-founded by Raghu Yarlagadda in 2018, has facilitated more than $2 trillion in trades for over 2,000 institutional clients. The company, last valued at $8 billion after a $150 million funding round in 2022, is now weighing an IPO.

Founded the same year, 21shares oversees $11 billion in assets across 55 listed products and is best known for co-launching one of the first U.S. spot bitcoin ETFs with ARK Invest in 2024.

The acquisition comes amid a rapid transformation of crypto markets, fueled by SEC-approved listing standards that simplify the process of launching crypto ETFs. Together, Falconx and 21shares aim to capitalize on that shift, bridging Wall Street and crypto markets as institutional adoption accelerates.

FAQ

  • What is the Falconx-21shares deal about?
    Falconx is acquiring 21shares to combine its trading infrastructure with 21shares’ ETF expertise in a push toward regulated crypto investment products.

  • Why is this acquisition significant?
    The merger positions Falconx as a leader in crypto ETFs as institutional demand and U.S. regulatory clarity grow.

  • What are the companies planning post-merger?
    The combined firm will launch new crypto funds built around derivatives and structured investment products.

  • How does this impact the broader crypto market?
    The deal signals deeper integration between Wall Street and crypto finance, accelerating mainstream ETF adoption.

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