Crypto trading firm FalconX announced Wednesday it will purchase crypto investment management firm 21Shares as it seeks to expand its exchange-traded fund (ETF) offerings.
The deal comes just over a month after the nation’s top financial regulator cleared the last remaining hurdle for dozens of new spot ETFs tied to cryptocurrencies ranging from Solana to Dogecoin. The terms of the acquisition were not disclosed.
The move marks another step in the normalization of the digital asset sector. The Trump administration has aligned itself with the industry by providing long-awaited regulatory clarity—a stark turnaround from years of struggle and the legal battles that paved the way for the approval of the first Bitcoin ETF in January 2024.
“We’re witnessing a powerful convergence between digital assets and traditional financial markets, as crypto ETPs (exchange-traded products) open new channels for investor participation through regulated, familiar structures,” said FalconX CEO Raghu Yarlagadda.
Founded in 2018 by Hany Rashwan and Ophelia Snyder, 21Shares currently manages over $11 billion in assets across dozens of products. FalconX plans to leverage 21Shares’ expertise in crypto ETFs and its own powerful brokerage platform to accelerate the adoption of digital asset investment products.
Market headwinds
While updated standards from the Securities and Exchange Commission are expected to unleash a flurry of new crypto ETFs, the current U.S. government shutdown could curb the agency’s ability to review and approve these filings.
The sector is also dealing with market volatility. Earlier this month, the crypto space saw its largest selloff ever after U.S. President Donald Trump renewed trade tensions with China. Concerns are also mounting over highly leveraged funds tracking crypto and related companies.
FalconX, which was valued at $8 billion in a 2022 funding round, has facilitated over $2 trillion in trading volume and maintains a client base exceeding 2,000 institutions.
