FalconX To Acquire 21Shares In Push Toward Crypto ETF Expansion: Report

• According to a report by The Wall Street Journal, FalconX has agreed to acquire crypto ETF manager 21Shares in a cash-and-equity deal.
• The report said the combined company will focus on developing new crypto funds based on derivatives and structured products.
• FalconX’s founder said the merger reflects a fundamental shift in Bitcoin market flows toward traditional investment “wrappers”.

Crypto trading platform FalconX has reportedly agreed to acquire 21Shares, one of the largest managers of exchange-traded funds (ETFs) focused on digital assets.

According to a report by The Wall Street Journal, the deal, financed through a mix of cash and equity, will combine FalconX’s institutional trading network with 21Shares’ expertise in crypto-based investment products. The report did not disclose the financial terms of the transaction.

Focus On Derivatives And Structured Products

The report said the merged company plans to develop new crypto funds centered on derivatives and structured products — a move aimed at broadening access to digital asset exposure through regulated investment vehicles. 

“Bitcoin flows are now happening through what we call traditional wrappers, and that’s a fundamental shift in market structure,” FalconX founder Raghu Yarlagadda told the publication. He added that the combined business will be able to bring products to market faster. 

FalconX Expands U.S. ETF Push Amid Wave Of Crypto M&A

21Shares is already the largest crypto ETP issuer in Europe, with more than $8 billion in assets under management and multiple listings across major exchanges. The firm has been expanding in the U.S. with filings for ETFs tied to Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Solana (SOL), and the FTSE Crypto 10 Index.

It partnered with Cathie Wood’s ARK Invest to launch ARK 21Shares Bitcoin ETF (ARKB). ARKB slipped more than 3% in pre-market trade on Wednesday, but retail sentiment on Stocktwits was trending in ‘bullish’ territory as chatter increased to ‘high’ from ‘normal ‘levels.

The deal follows a wave of consolidation across the crypto sector. Last week, Ripple purchased GTreasury, a corporate treasury management software firm, for $1 billion. Coinbase Global also struck a $375 million agreement to acquire Echo, a blockchain capital-raising platform, on Tuesday, according to The Wall Street Journal.

Read also: Bitcoin Holds Steady At $107,000 After $750 Million Liquidations – Jim Cramer Warns Of ‘Huge Spec Wave’

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