Prime Broker FalconX Acquires 21Shares to Expand into Crypto ETFs

The cryptocurrency industry continues attracting US-based institutions, reflected in the newest major acquisition news.

US-based institutional prime broker FalconX has agreed to acquire 21Shares, a leading Swiss-based crypto asset manager known for its extensive suite of exchange-traded products (ETPs).

The terms of the deal have not been disclosed.

21Shares Acquisition

The acquisition positions FalconX to expand beyond its traditional strengths in market making and liquidity services into the rapidly growing domain of crypto ETFs and structured products, according to an exclusive report by WSJ. With 21Shares’ established distribution network and expertise in product engineering, which boasts more than $11 billion in assets across Bitcoin, Ethereum, and token-specific baskets in Europe, FalconX gains immediate scale and a ready-made platform to develop derivative-focused and crypto funds.

The deal comes amid a broader industry push toward offering investors access to more sophisticated crypto exposures, including staking strategies, smaller tokens, and regulated derivative wrappers. FalconX has already launched a 24/7 over-the-counter options platform last month, covering Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other digital assets.

21Shares, on the other hand, recently reached a milestone by listing 50 crypto exchange-traded products (ETPs) across Europe.

Crypto M&A Frenzy

The acquisition of 21Shares is indicative of a wider wave of M&A activity in the sector, which has been fueled in part by a more accommodating regulatory climate in the US this year.

Other significant transactions that depict the trend include Coinbase completing its $2.9 billion acquisition of Deribit in a bid to expand its derivatives trading capabilities. More recently, Coinbase acquired Echo, a popular platform for early-stage crypto fundraising, in a $375 million deal combining cash and stock.

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Meanwhile, Kraken acquired Small Exchange, a US Commodity Futures Trading Commission (CFTC)-licensed Designated Contract Market (DCM), from IG Group for $100 million last week. Prior to that, the crypto exchange had announced its plans to buy retail futures trading platform NinjaTrader for $1.5 billion, to expand into multiple asset classes and grow its user base.