FalconX Buys 21Shares to Grow its Crypto Fund Business

FalconX, a U.S. crypto trading firm, has agreed to buy 21Shares, one of the biggest issuers of exchange-traded products for digital assets.

Per a report from the Wall Street Journal, the deal, paid through cash and equity, aims to help FalconX build new crypto funds that focus on derivatives and structured products.

FalconX Moves to Expand its Reach in Crypto Trading

FalconX has reached an agreement to buy 21Shares, a company known for managing a wide range of exchange-traded products that track digital assets.

The deal brings together FalconX’s trading and brokerage services with 21Shares’ experience in building and running crypto funds.

The companies did not share the price or other terms of the agreement.

FalconX is a prime broker that provides trading, market-making, and liquidity services to institutional clients.

By acquiring 21Shares, it plans to move deeper into the crypto fund market. The goal is to offer more advanced investment products that go beyond basic spot trading.

Executives from both companies said the combined business will develop crypto funds centered on derivatives and structured investments.

These products could attract investors who want new ways to trade or manage risk in digital assets.

The deal marks another step in FalconX’s plan to become a full-service platform for institutional crypto investors.

21Shares brings a strong track record in exchange-traded products. The firm manages more than $11 billion in assets, including funds tied to Bitcoin, Ethereum, and other tokens.

It also offers products that track baskets of cryptocurrencies as well. Recently, it launched an exchange-traded product linked to an AI-related token, expanding its presence in Europe.

Building New Products for a Changing Market

The acquisition will give FalconX access to 21Shares’ experience in designing and distributing crypto investment products.

With this expertise, FalconX aims to create funds that include derivative-based strategies and structured approaches to investing in digital assets.

FalconX has already been expanding its own offerings. Last month, it introduced a 24/7 over-the-counter options platform that supports Bitcoin, Ethereum, Solana, and several other tokens.

This move shows its growing interest in crypto derivatives, a sector that continues to gain attention from institutional investors.

Market watchers believe that by combining 21Shares’ product knowledge with FalconX’s trading and liquidity network. Also, the merged company hopes to deliver new tools for investors.

These could include funds focused on smaller assets like SUI, staking strategies, and other areas that provide exposure beyond major cryptocurrencies.

Executives say this combination could make it easier for institutions to enter the crypto market through regulated and well-structured products.

It also shows how crypto trading firms are looking to offer more stable and diverse ways to invest in the growing digital asset space.

Crypto Industry Sees More Mergers and Partnerships

The FalconX and 21Shares deal comes at a time when merger activity in the crypto industry is rising.

More companies are joining forces to expand their services and strengthen their positions as markets mature and U.S. regulators take a more open approach to digital assets.

Coinbase recently agreed to buy Deribit for $2.9 billion. Kraken purchased Small Exchange to expand its U.S. derivatives business.

It had earlier acquired NinjaTrader for $1.5 billion. Coinbase also announced a $375 million deal to acquire the investment platform Echo.

These moves show how firms are preparing for the next stage of growth in crypto trading. FalconX’s purchase of 21Shares fits into this trend, giving it new products to offer and a stronger global presence.

The deal brings together two firms with different strengths but shared goals. FalconX’s trading and brokerage systems will now sit alongside 21Shares’ network of exchange-traded funds.