FalconX to acquire 21shares to expand crypto ETF offerings
Crypto trading firm FalconX announced on Wednesday that it will acquire crypto investment manager 21shares as part of its push into exchange-traded funds (ETFs), News.Az reports, citing Reuters.
The acquisition comes shortly after the U.S. regulator cleared the way for a wave of new spot ETFs tied to cryptocurrencies, including Solana and Dogecoin. FalconX plans to leverage 21shares’ expertise in crypto ETFs and its brokerage platform to advance the adoption of digital asset investment products.
Founded in 2018 by Hany Rashwan and Ophelia Snyder, 21shares currently manages over $11 billion in assets across multiple products. FalconX, valued at $8 billion in a 2022 funding round, has facilitated over $2 trillion in trading volume and serves more than 2,000 institutional clients.
“We’re witnessing a powerful convergence between digital assets and traditional financial markets, as crypto ETPs open new channels for investor participation through regulated, familiar structures,” said FalconX CEO Raghu Yarlagadda.
While new SEC standards are expected to drive a surge in crypto ETFs, a potential U.S. government shutdown could slow approvals. The sector is also facing concerns over highly leveraged crypto funds, which saw a major selloff earlier this month amid renewed trade tensions between the U.S. and China.
