FalconX Acquires 21Shares to Expand Into Crypto ETFs and Structured Products

Institutional Prime Broker Deepens Push Into Asset Management Amid Growing U.S. Adoption

U.S.-based institutional prime broker FalconX has officially agreed to acquire 21Shares, one of Europe’s leading crypto asset managers known for its extensive lineup of exchange-traded products (ETPs). The transaction marks a strategic shift for FalconX as it moves beyond market-making and liquidity provisioning to enter the fast-growing digital asset fund management sector.

FalconX Moves Into Crypto ETF Leadership

While the financial terms of the acquisition remain undisclosed, the deal gives FalconX access to 21Shares’ established European distribution network and a product suite that already manages over $11 billion in assets. These include Bitcoin, Ethereum, and diversified crypto index baskets, all offered through regulated ETPs listed across major European exchanges.

By integrating 21Shares’ expertise in ETF engineering, FalconX is poised to develop new derivative-linked and fund-based products tailored for institutional investors seeking compliant exposure to crypto markets. The move comes shortly after FalconX launched its 24/7 over-the-counter options platform, expanding its product coverage to include Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).

Broader M&A Wave in the Crypto Sector

The acquisition highlights a growing wave of consolidation in the crypto industry, driven by a friendlier regulatory backdrop and rising institutional demand in the U.S. Over the past year, several high-profile deals have underscored this trend.

Coinbase recently finalized its $2.9 billion purchase of derivatives exchange Deribit and followed up with a $375 million acquisition of fundraising platform Echo. Meanwhile, Kraken bought Small Exchange — a CFTC-licensed derivatives marketplace — for $100 million, adding to its earlier plans to acquire retail futures trading platform NinjaTrader for $1.5 billion.

This ongoing merger momentum reflects a broader strategic shift across major players in digital finance: building full-service ecosystems that combine trading, custody, and fund management under one roof.