The cryptocurrency industry continues to attract US institutions, as evidenced by the latest major acquisition news.
US-based institutional prime broker FalconX has agreed to acquire 21Shares, a leading Swiss crypto asset manager known for its extensive range of exchange-traded products (ETPs).
Terms of the deal were not disclosed.
21Stock purchase
The acquisition positions FalconX expand According to an exclusive report from WSJ, the company is moving beyond its traditional strengths in market making and liquidity services into the fast-growing domain of crypto ETFs and structured products. With 21Shares’ established distribution network and product engineering expertise, which has over $11 billion in assets across Bitcoin, Ethereum and token-specific baskets in Europe, FalconX gains immediate scale and a turnkey platform to develop derivatives-focused and crypto funds.
The deal comes amid a broader industry push to provide investors with access to more advanced crypto exposures, including staking strategies, smaller tokens and regulated derivative wrappers. FalconX already launched a 24/7 over-the-counter options platform last month, which includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other digital assets.
21Shares, on the other hand, recently reached a milestone by launching 50 crypto exchange-traded products (ETPs) across Europe.
Crypto M&A frenzy
The 21Shares acquisition is indicative of a broader wave of mergers and acquisitions in the sector, fueled in part by a looser regulatory environment in the US this year.
Other major transactions reflecting the trend include Coinbase completing its $2.9 billion acquisition of Deribit in an effort to expand its derivatives trading capabilities. More recently, Coinbase acquired Echo, a popular early-stage crypto fundraising platform, in a $375 million deal combining cash and stock.
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Meanwhile, Kraken last week bought Small Exchange, a U.S. Commodity Futures Trading Commission (CFTC)-licensed Designated Contract Market (DCM), from IG Group for $100 million. Before that, the cryptocurrency exchange had announced its plans to buy retail futures trading platform NinjaTrader for $1.5 billion, expand into multiple asset classes and grow its user base.
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