FalconX to Acquire 21Shares, Focus on Crypto Funds Development
Institutional crypto trading firm FalconX is negotiating the acquisition of 21Shares, a major digital asset ETP issuer. The acquisition will involve cash and equity, though specific terms are undisclosed. The combined entity plans to launch crypto funds focusing on derivatives and structured products.
FalconX and 21Shares: Strategic Merger
- FalconX, founded in 2018, has processed over $2 trillion in trades, serving more than 2,000 clients globally.
- Specializes in institutional trading, staking, and credit services; valued at $8 billion in 2022.
- 21Shares, also founded in 2018, manages $11 billion across 55 ETPs and co-launched the first US spot Bitcoin ETF with ARK Investment.
- The merger aims to leverage FalconX’s infrastructure with 21Shares' ETF design expertise.
ETF Market Expansion
- This merger represents a significant consolidation between a trading platform and an ETF manager.
- Bloomberg reports 155 crypto ETP filings for 35 cryptocurrencies, indicating rising institutional interest.
- Predictions suggest the number of crypto investment products could exceed 200 within the next year.
- Spot Bitcoin ETFs saw a $477.2 million net inflow on October 21, reflecting bullish market trends.