FalconX Expands Into Asset Management With $11B 21Shares Deal
FalconX, one of the world’s leading institutional crypto trading firms, announced it has agreed to acquire Swiss-based 21Shares, the largest crypto exchange-traded product (ETP) issuer globally, in a move set to reshape the digital asset landscape.
The acquisition combines FalconX’s trading and brokerage infrastructure with 21Shares’ ETP platform, which spans Europe and the United States and manages over $11 billion across 55 listed crypto products.
Bridging Traditional Finance and Digital Assets
FalconX, which has handled more than $2 trillion in trading volume for over 2,000 institutional clients, said the deal underscores the “powerful convergence between digital assets and traditional financial markets.”
The merger aims to make crypto investment vehicles more accessible to mainstream investors by integrating ETPs - similar to ETFs - into FalconX’s institutional-grade ecosystem for trading, derivatives, and credit services.
Yarlagadda added that FalconX is pursuing a “long-term investment strategy” to create value across market cycles while positioning the firm as a central hub for digital asset liquidity and structured products.
21Shares to Operate Independently
Following the deal, 21Shares will continue operating independently under its current leadership, with CEO Russell Barlow retaining his role. FalconX emphasized that the acquisition is part of its 2025 expansion plan that also includes previous takeovers of Arbelos Markets and Monarq Asset Management.
The acquisition reinforces FalconX’s broader mission to bridge the gap between decentralized finance and institutional investment frameworks, creating an integrated model for crypto capital markets.
A Move Toward Market Leadership and IPO Ambitions
FalconX was last valued at $8 billion after its 2022 Series D round, led by Singapore’s GIC and B Capital, more than doubling its valuation from the $3.75 billion Series C a year prior.
Despite exposure to the FTX collapse in late 2022, FalconX assured clients that the incident did not impact customer funds or ongoing operations, maintaining business continuity through the market turmoil.
The Future of Crypto ETPs
With the acquisition of 21Shares, FalconX positions itself at the center of the rapidly expanding ETP sector, where regulated investment products like Bitcoin and Ethereum ETPs are driving mainstream adoption.
Analysts say the deal cements FalconX’s role as a dominant institutional player capable of offering both on-exchange trading infrastructure and regulated asset management solutions, a combination rarely seen in crypto finance.
As traditional institutions increasingly integrate crypto into their portfolios, the FalconX–21Shares merger could mark the start of a new wave of consolidation between digital finance and Wall Street-style investment products.
