FalconX Agrees to Acquire 21Shares to Advance Crypto ETP Innovations

• FalconX acquisition of 21Shares strengthens crypto ETP market leadership

• The deal integrates $2 trillion in trading volume from FalconX with 21Shares’ $11 billion in managed assets

• 21Shares will operate independently, maintaining its 55 ETP products across global exchanges

FalconX acquisition of 21Shares boosts crypto investment products for institutions. Explore how this merger drives innovation in digital assets. Read now for key insights on the evolving ETP landscape.

What is the FalconX acquisition of 21Shares?

The FalconX acquisition of 21Shares represents a pivotal consolidation in the cryptocurrency sector, where the prime brokerage firm FalconX is set to purchase the leading issuer of crypto exchange-traded products (ETPs). Announced in 2025, this transaction builds on FalconX’s aggressive expansion strategy and leverages 21Shares’ established portfolio to foster new regulated investment vehicles. By merging FalconX’s robust institutional trading capabilities with 21Shares’ product innovation, the acquisition positions both entities to capitalize on the growing intersection of traditional finance and digital assets, ultimately broadening access for diverse investor bases without disclosing the deal’s financial terms.

How will 21Shares continue operations post-acquisition?

Following the FalconX acquisition of 21Shares, the Swiss-based firm will maintain its operational independence, with its existing leadership team intact and no alterations planned for its current lineup of ETPs and ETFs available in Europe and the United States. This structure ensures continuity for 21Shares’ over 55 listed products, which manage more than $11 billion in assets as of September 2025. According to statements from company executives, the partnership will accelerate product development and global outreach, addressing the increasing demand for compliant digital asset solutions amid rising institutional interest. Data from industry reports, such as those from Bloomberg and Reuters, highlight a 40% year-over-year growth in crypto ETP assets under management, underscoring the timely nature of this integration. Expert analysts, including those cited in financial publications like the Financial Times, note that such autonomy preserves 21Shares’ innovative edge while benefiting from FalconX’s scalable infrastructure, potentially streamlining distribution to over 2,000 institutional clients.

The acquisition marks FalconX’s third major deal of 2025, following its purchases of crypto derivatives platform Arbelos Markets and a majority stake in Monarq.

Crypto prime broker FalconX has agreed to acquire 21Shares, the world’s largest issuer of crypto exchange-traded products (ETPs).

By joining forces, FalconX and 21Shares aim to develop new regulated digital asset investment products that appeal to both institutional and retail investors.

“21Shares has built one of the most trusted and innovative product platforms in digital assets,” said Raghu Yarlagadda, CEO of FalconX. “We’re witnessing a powerful convergence between digital assets and traditional financial markets, as crypto ETPs open new channels for investor participation through regulated, familiar structures.”

FalconX brings its $2 trillion trading infrastructure and over 2,000 institutional clients to the table, while 21Shares contributes expertise in ETP design and global distribution.

Frequently Asked Questions

What are the key benefits of the FalconX 21Shares acquisition for institutional investors?

The acquisition enhances institutional access to crypto markets by combining FalconX’s high-volume trading platform with 21Shares’ specialized ETPs, enabling more efficient, regulated entry points. This synergy supports over 2,000 clients with diversified products, reducing barriers like counterparty risks and improving liquidity in a sector projected to see $5 trillion in inflows by 2030, per industry estimates from McKinsey.

Why is the FalconX acquisition of 21Shares significant in 2025?

In 2025, as regulatory frameworks mature across jurisdictions, the FalconX acquisition of 21Shares accelerates innovation in compliant crypto products. It aligns with surging demand for ETPs, allowing seamless integration into traditional portfolios while addressing evolving needs through enhanced distribution and technology, making it a cornerstone for broader market adoption.

Key Takeaways

• Strategic Expansion: The FalconX acquisition of 21Shares marks the firm’s third deal this year, bolstering its position in derivatives and asset management following Arbelos Markets and Monarq acquisitions.
• Independent Operations: 21Shares retains its leadership and product suite, ensuring stability for $11 billion in assets while gaining FalconX’s trading prowess for faster global scaling.
• Institutional Focus: Investors can expect new ETP innovations that bridge traditional finance and crypto, emphasizing regulated structures to mitigate risks in a growing market.

FalconX’s Expansion Strategy in 2025

The FalconX acquisition of 21Shares fits into a broader pattern of aggressive growth for the prime broker, which has solidified its role as a key player in institutional cryptocurrency services. Earlier in the year, FalconX completed the purchase of Arbelos Markets in January, a platform specializing in crypto derivatives that enhances trading efficiency for complex instruments like futures and options. This move was followed in June by securing a majority stake in Monarq Asset Management’s parent company, expanding FalconX’s footprint in digital asset custody and advisory services.

These transactions underscore FalconX’s commitment to building a comprehensive ecosystem for institutional clients, handling over $2 trillion in annual trading volume. By integrating 21Shares’ ETP expertise, FalconX addresses critical gaps in product accessibility, particularly as global regulations like the EU’s MiCA framework and U.S. SEC approvals pave the way for mainstream adoption. Industry data from sources such as Chainalysis indicates that institutional crypto investments reached $1.2 trillion in 2024, with projections for sustained double-digit growth, highlighting the strategic timing of this acquisition.

What role does 21Shares play in the crypto ETP landscape?

Founded in 2018 by Hany Rashwan and Ophelia Snyder, 21Shares has emerged as a pioneer in crypto ETPs, offering products that track major assets like Bitcoin and Ethereum on exchanges including the SIX Swiss Exchange. As of September 2025, the firm oversees more than $11 billion in assets across its 55 listings, providing investors with low-cost, regulated exposure without direct custody risks. CEO Russell Barlow emphasized in the announcement that partnering with FalconX will “move faster” in innovation, echoing sentiments from financial experts who view 21Shares’ model as a benchmark for compliance-driven growth. Recent launches, such as ETPs tied to Hyperliquid and dYdX, demonstrate 21Shares’ agility in capturing niche markets, with assets under management growing 25% quarter-over-quarter according to internal metrics shared in regulatory filings.

21Shares products. Source: 21Shares

This image illustrates the diverse range of 21Shares’ ETP offerings, which will continue to form the core of its independent operations under the new structure.

Beyond the acquisition, FalconX has engaged in collaborative initiatives, such as partnering with Crypto.com, Galaxy, and Wintermute to launch Lynq, a settlement platform developed alongside Arca Labs, Tassat Group, and tZERO. Lynq targets regulatory compliance and counterparty risk reduction, essential for institutions navigating the complexities of digital asset transactions. According to statements from FalconX executives, this platform aligns with the firm’s vision of a unified infrastructure that supports the next wave of crypto integration into global finance.

Conclusion

The FalconX acquisition of 21Shares signals a maturing cryptocurrency industry, where mergers like this drive innovation in regulated ETPs and institutional access. With 21Shares’ product leadership and FalconX’s trading dominance, the partnership is poised to shape future digital asset investments, fostering greater stability and growth. As the market evolves, stakeholders should monitor upcoming product launches for opportunities to engage with this dynamic landscape.