Crypto Trading Firm FalconX to Acquire 21Shares in Major ETF Push

Crypto trading firm FalconX announced its acquisition of 21Shares, a leading crypto investment-management company, in a move to expand its exchange-traded fund (ETF) offerings. The deal was disclosed on Wednesday and marks one of the largest strategic plays yet in the regulated crypto investment space.

21Shares manages over $11 billion in assets across dozens of products, and FalconX aims to leverage that expertise—and brokerage capabilities—to accelerate mainstream access to crypto-linked ETFs. The acquisition comes just over a month after U.S. regulators cleared the way for a surge in new spot-crypto ETFs covering assets like Solana and Dogecoin.

FalconX, formerly valued at around $8 billion in a 2022 funding round, has facilitated more than $2 trillion in trading volume and serves over 2,000 institutional clients. While the terms of the deal were not publicly disclosed, FalconX’s CEO Raghu Yarlagadda described the move as part of a “powerful convergence between digital assets and traditional financial markets.”

Why It Matters

This acquisition signals a deeper institutional shift: digital assets are increasingly being packaged in familiar, regulated structures (i.e., ETFs) rather than purely speculative vehicles. For brokers, investors, and asset-managers, this highlights the growing legitimacy of crypto and could drive fresh inflows and liquidity across the sector.

At the same time, the timing is critical: the U.S. government shutdown has slowed regulatory review processes, raising questions about how quickly new filings will be approved. Meanwhile, concerns linger over highly leveraged crypto-related funds following recent large-scale liquidation events.

What to Watch

• How quickly regulators approve new spot-crypto ETF filings following the acquisition.

• Whether institutional and retail demand for crypto ETFs accelerates, especially via 21Shares’ product pipeline.

• Potential M&A ripple effects: will other major brokers or trading firms pursue similar deals to establish crypto-ETF capabilities?

• Market reaction in crypto infrastructure and brokerage stocks, which may benefit from increased adoption and volume.