FalconX To Buy $11B ETF Firm 21Shares In Crypto Push
US crypto prime broker FalconX has agreed to acquire 21Shares, the $11 billion manager behind some of the world’s largest digital-asset ETFs.
The deal will see 21Shares combine its distribution and ETF experience with FalconX’s $2 trillion trading and primer brokerage infrastructure and over 2,000 institutional clients.
“Together, we’ll pioneer solutions that will meet the evolving needs of digital asset investors worldwide,” said 21Shares CEO Russell Barlow.
The financial terms of the deal were not disclosed.
21Shares Will Operate Independently Under FalconX
21Shares was founded in 2018 by Hany Rashwan and Ophelia Snyder, and has since grown to become a dominant force in the crypto ETF market.
The firm manages more than $11 billion in assets across 55 listed products as of September this year.
Some of the crypto ETPs offered by 21Shares (Source: 21Shares)
“21Shares has built one of the most trusted and innovative product platforms in digital assets,” said FalconX CEO Raghu Yarlagadda.
“We’re witnessing a powerful convergence between digital assets and traditional financial markets, as crypto ETPs open new channels for investor participation through regulated, familiar structures,” the CEO added.
As part of the deal, 21Shares’ leadership will remain in place and it will operate independently. There will also be no immediate changes to the company’s existing ETFs in Europe and the US.
FalconX’s Third Deal This Year
The acquisition is FalconX’s third deal of the year. Early in 2025, it acquired Arbelos Markets, a firm that specializes in crypto derivatives, without disclosing the terms of the deal.
In June, FalconX took a majority stake in the parent company of Monarq Asset Management, which is a Cayman-registered fund.
The firm also rolled out a 24/7 over-the-counter (OTC) options platform last month that supports Bitcoin, Ethereum, Solana, and other tokens.
Firms Capitalize On Friendlier US Regulatory Environment
FalconX’s deal with 21Shares is also the latest in an array of acquisitions by crypto firms this year amid an improved regulatory environment in the US.
Among major moves was Coinbase’s purchase of Deribit for $2.9 billion earlier this year, and its deal agreed this week to buy the funding platform Echo for around $375 million.
Kraken recently announced its acquisition of Small Exchange to expand its US derivatives capabilities, which followed an earlier deal to buy NinjaTrader for $1.5 billion.
Donald Trump vowed to turn the US into the “crypto capital of the world” if he became president, and he has wasted no time trying to deliver on that promise.
He’s implemented a blizzard of pro-crypto policies, from establishing a Strategic Bitcoin Reserve to providing regulatory clarity for stablecoins via the GENIUS Act.
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