Prime Broker FalconX Acquires 21 Stocks to Expand into Crypto ETFs

The cryptocurrency industry continues to attract US-based institutions, as reflected in the latest news of major acquisitions.

FalconX, the leading US-based institutional broker, has agreed to acquire 21Shares, a leading Swiss-based crypto asset manager known for its broad set of exchange-traded products (ETPs).

Terms of the agreement have not been disclosed.

Acquisition of 21 shares

The acquisition positions FalconX as expand beyond its traditional strengths in market making and liquidity services into the rapidly growing domain of crypto ETFs and structured products, according to an exclusive WSJ report. With 21Shares’ established distribution network and product engineering expertise, which has over $11 billion in assets in Bitcoin, Ethereum and targeted token baskets in Europe, FalconX gains immediate scale and a platform ready to develop crypto and derivatives-focused funds.

The deal comes amid a broader industry push to offer investors access to more sophisticated crypto exposures, including staking strategies, smaller tokens, and regulated derivatives wrappers. FalconX already launched a 24/7 over-the-counter options platform last month covering Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and other digital assets.

21Shares, on the other hand, recently reached a milestone by listing 50 cryptocurrency exchange-traded products (ETPs) across Europe.

Cryptocurrency M&A Frenzy

The 21Shares acquisition is indicative of a broader wave of M&A activity in the sector, which has been driven in part by a more accommodative regulatory climate in the United States this year.

Other major transactions representing the trend include Coinbase completing its $2.9 billion acquisition of Deribit in a bid to expand its derivatives trading capabilities. Most recently, Coinbase acquired Echo, a popular platform for early-stage crypto fundraising, in a $375 million deal combining cash and stock.

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Meanwhile, Kraken acquired Small Exchange, a designated contracts market (DCM) licensed by the US Commodity Futures Trading Commission (CFTC), from IG Group for $100 million last week. Prior to that, the crypto exchange had announced its plans to buy retail futures trading platform NinjaTrader for $1.5 billion, to expand into multiple asset classes and grow its user base.