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FalconX to Acquire 21Shares, Marrying Prime Brokerage With Crypto ETF Issuance

The tie-up creates a vertically integrated crypto platform spanning institutional trading to ETF issuance.

Overview

  • FalconX said it will buy Swiss ETP issuer 21Shares to expand into issuing crypto ETFs, and the financial terms were not disclosed.
  • 21Shares will continue to operate independently under CEO Russell Barlow after the transaction closes, according to company statements.
  • Multiple reports say the deal is financed with a mix of cash and equity, and Bloomberg reports it is expected to close by the end of the year.
  • The combined business plans to build ETFs, derivatives, and structured crypto funds by pairing FalconX’s brokerage infrastructure with 21Shares’ product platform.
  • 21Shares manages over $11 billion across roughly 55 listed products and FalconX has facilitated more than $2 trillion in trading for 2,000+ institutions as crypto ETP filings surge.