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- FalconX’s acquisition of 21Shares strengthens its position in the growing crypto ETP market.
- The deal will enable the creation of innovative, regulated digital asset products for diverse investors.
- This acquisition is FalconX’s third strategic move in 2025 to enhance its crypto market presence.
FalconX, a crypto prime broker, has acquired 21Shares, the biggest issuer of crypto exchange-traded products (ETPs) globally. This deal is aimed at creating new, regulated, digital asset investment products. The two companies will strive to provide new solutions to the evolving digital asset sector for institutional and retail clients.
The acquisition of 21Shares provides FalconX with expertise in the design and distribution of ETFs in Europe and globally. Therefore, 21Shares has access to FalconX’s $2 trillion trading infrastructure and more than 2,000 institutional clients. The concept is to develop new products as a way of reacting to the growing demand for regulated instruments in cryptocurrency investment.
FalconX and 21Shares Collaboration Set to Accelerate Digital Asset Innovation
Raghu Yarlagadda, the CEO of FalconX, underlined a high similarity between digital assets and traditional financial markets. Crypto ETPs, in his view, precondition new opportunities to invest in the world of regulated and familiar structures. He believes that this cooperation will drive the world of digital assets.
One of the biggest crypto ETF companies is 21Shares, a company that was founded in 2018. As of September 2025, it manages over 11 billion in assets on 55 listed products. However, at the time of acquisition, 21Shares will continue to have the same leadership. The CEO, Russell Barlow, thinks the acquisition is the opportunity to expand its presence and accelerate its profits in the market.
Surge in Crypto ETF Filings Reflects Growing Institutional Demand
However, it is the third major acquisition FalconX has had in 2025. FalconX acquired the Arbelos Markets crypto derivatives trading platform and a majority stake in the parent of Monarq Asset Management in the same year. This is one of the ongoing attempts by FalconX to take a strong foothold in the crypto market.
The demand for crypto ETFs has been high. Bloomberg senior ETF analyst Eric Balchunas has indicated that 155 cryptocurrency ETFs have been filed this year alone with 35 different forms of cryptocurrencies. Moreover, he predicts that this can even go up to 200 or more next year. This curiosity shows that the institutional investors’ demand for crypto investment products is on the increase.
FalconX also continues to expand its collaborations besides the takeover. It has also partnered with Crypto.com, Galaxy, and Wintermute as a launch partner of a new settlement platform named Lynq. The utilization of digital assets is on the rise, and therefore, Lynq is designed to resolve regulatory and counterparty risks.
However, the acquisition of 21Shares will place FalconX at the top of the future of digital investment in assets, and their innovation will be enhanced in an industry with exceptionally dynamic change.
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