FalconX Expands Into ETFs With Acquisition of 21Shares Amid Growing Institutional Crypto Demand

Prime broker’s purchase highlights shift from native tokens to regulated investment vehicles
TL;DR
- FalconX agreed to acquire Swiss-based 21Shares to merge institutional trading infrastructure with crypto ETF expertise.
- 21Shares manages over $11 billion in exchange-traded products across more than 50 listings.
- The move underscores a broader institutional migration toward regulated crypto “wrappers” such as ETFs and ETPs.

FalconX, one of the largest institutional crypto prime brokers, has struck a deal to acquire Zurich-based 21Shares, a leading issuer of crypto exchange-traded products (ETPs), in a transaction blending cash and equity. The deal, announced on October 22, 2025, marks FalconX’s most aggressive expansion yet into regulated investment products. Neither company disclosed the financial terms, but both confirmed that 21Shares will continue operating independently under its existing leadership, maintaining its roster of listed funds in Europe and the United States.
FalconX chief executive Raghu Yarlagadda said the merger positions the firm to “bring products to market faster” and reflects how “Bitcoin flows are now happening through traditional wrappers, a fundamental shift in market structure.” That shift highlights the growing role of exchange-traded products as the preferred onramp for institutional investors entering digital assets. FalconX, valued at $8 billion in its 2022 Series D round and serving more than 2,000 institutional clients, has processed more than $2 trillion in cumulative crypto trading volume—scale that could now support and distribute 21Shares’ product suite to a much wider investor base.
21Shares brings a formidable track record of packaging cryptocurrencies into regulated investment vehicles. Founded in 2018 by Hany Rashwan and Ophelia Snyder, the company manages over $11 billion across roughly 55 exchange-traded products, making it one of Europe’s most established digital asset issuers. Its lineup ranges from spot Bitcoin and Ethereum ETPs to thematic baskets tracking decentralized finance and Layer 2 ecosystems. FalconX plans to integrate its prime-brokerage infrastructure—trading, derivatives, custody, and lending—into that framework to create a new class of crypto ETFs and structured products tailored for institutional investors.
The acquisition comes amid a wave of crypto industry consolidation as traditional finance merges with digital-asset platforms. Analysts view the deal as a logical response to the U.S. Securities and Exchange Commission’s recent approval of streamlined listing standards for crypto ETFs in September, which shortened review times and lowered the barrier to launch regulated crypto funds. Market observers see FalconX’s move as a direct bid to capture institutional demand now that regulatory clarity has improved on both sides of the Atlantic.
Neither company revealed a closing timeline, but integration is expected to begin shortly after regulatory clearance. For FalconX, this marks a pivot from a pure trading infrastructure provider to a diversified financial services firm capable of manufacturing investment products. For 21Shares, access to FalconX’s liquidity network and client base offers immediate global reach. Together, the two firms aim to bridge the long-standing divide between crypto-native market structure and traditional capital markets, signaling that the future of digital-asset investment may be built as much on ETFs and ETPs as on the underlying tokens themselves.
This article has been refined and enhanced by ChatGPT.