FalconX Expands with Acquisition of Leading Crypto ETP Issuer 21Shares

By: Eliza Bennet

Crypto prime broker FalconX has taken a significant step in expanding its reach within the digital asset market by acquiring 21Shares, the preeminent issuer of crypto exchange-traded products (ETPs). This acquisition marks the third major deal for FalconX in 2025, following the acquisitions of Arbelos Markets, a crypto derivatives platform, and a majority stake in Monarq. The integration aims to pave the way for innovative, regulated digital asset investment products, appealing to both institutional investors and retail audiences seeking familiarity in the volatile crypto space.

With over $11 billion in crypto products listed, 21Shares has established itself as a leading player in the ETP arena. FalconX’s CEO, Raghu Yarlagadda, highlighted the importance of this convergence between digital assets and traditional financial markets, noting that crypto ETPs offer new channels for investor participation through regulated financial structures. This move is a part of FalconX's broader strategy to integrate traditional financial frameworks with the burgeoning crypto landscape to provide secure, regulated investment avenues.

The deal underscores the growing trend of consolidation within the crypto industry as firms seek to enhance their capabilities and reach by leveraging strategic acquisitions. FalconX and 21Shares, together, plan to innovate and offer new digital asset investment solutions that integrate seamlessly with existing financial infrastructures. By bridging the gap between digital and traditional markets, FalconX is positioning itself at the forefront of a rapidly evolving investment environment, offering stability and innovation in equal measure. As the crypto market continues to mature, such mergers and acquisitions are expected to become increasingly common, highlighting the sector's ongoing evolution and institutionalization.