FalconX will acquire crypto fund issuer 21Shares. The deal will boost development of derivative-based crypto products. The acquisition is funded via cash and equity; terms are undisclosed.
In a major move within the digital asset industry, FalconX, a leading crypto trading platform, has agreed to acquire 21Shares, a well-known crypto exchange-traded product (ETP) issuer. The acquisition was first reported by The Wall Street Journal and confirmed by executives from both companies.
While the financial terms of the deal remain confidential, it is known that the transaction was financed using a mix of cash and equity. This strategic acquisition aims to combine FalconX’s trading infrastructure with 21Shares’ expertise in crypto fund management.
Focus on Derivatives and Structured Products
The newly merged entity will shift its focus toward creating crypto funds that are built on derivatives and structured products. These financial instruments are commonly used in traditional markets to manage risk and increase returns, but they are still emerging in the digital asset space.
By combining forces, FalconX and 21Shares aim to fill this gap in the crypto investment market, offering more sophisticated products to institutional investors and advanced traders. This could pave the way for new kinds of exchange-traded funds (ETFs) and other fund offerings designed to meet the growing demand for diversified crypto exposure.
According to The Wall Street Journal, crypto trading firm FalconX has agreed to acquire 21Shares. Executives from both companies said the merged entity will focus on developing crypto funds based on derivatives and structured products. Deal terms were not disclosed, but the…
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What This Means for the Industry
This merger could mark a turning point for crypto funds, especially those seeking to move beyond basic spot-market exposure. As regulatory environments continue to evolve and institutional interest grows, the demand for advanced investment products is also increasing.
FalconX’s deep liquidity and trading infrastructure, paired with 21Shares’ regulatory experience and fund management, create a strong foundation for innovation in the crypto asset management space. The deal signals an industry trend toward consolidation and specialization, especially as the next wave of crypto financial products takes shape.