FalconX, a leading crypto prime broker, has agreed to acquire 21Shares, the world’s largest issuer of crypto exchange-traded products (ETPs). The deal strengthens FalconX’s position in regulated digital asset markets and signals a growing bridge between traditional finance and crypto investing.
FalconX’s Third Big Move of 2025
This acquisition marks FalconX’s third major deal of the year. Earlier in 2025, the company bought crypto derivatives platform Arbelos Markets and took a majority stake in Monarq Asset Management’s parent company. With 21Shares now joining the roster, FalconX is clearly accelerating its strategy to expand its footprint across trading, asset management, and regulated investment products.
The size of the deal was not disclosed, but FalconX described it as a milestone in building a more complete infrastructure for digital assets. The company’s trading platform handles more than $2 trillion in annual volume and serves over 2,000 institutional clients worldwide.
Combining Institutional Strength with Retail Reach
By bringing 21Shares under its umbrella, FalconX aims to create new pathways for both institutional and retail investors to access crypto markets through regulated structures. The companies said they plan to co-develop a new suite of investment products designed to meet the evolving needs of global investors.
“21Shares has built one of the most trusted and innovative product platforms in digital assets,” said Raghu Yarlagadda, CEO of FalconX. “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.”
FalconX will contribute its institutional-scale trading network and liquidity infrastructure, while 21Shares brings its expertise in ETP design, regulatory navigation, and international distribution. Together, they intend to make crypto exposure more accessible through products that meet established financial standards.
21Shares to Operate Independently
Following the acquisition, 21Shares will continue to operate as an independent entity under the FalconX umbrella. The company’s leadership team will remain in place, and no changes are planned to its existing suite of ETPs or ETFs in Europe and the United States.
Russell Barlow, CEO of 21Shares, said joining forces with FalconX would allow the company to “move faster” and strengthen its reach. “Together, we’ll pioneer solutions that meet the evolving needs of digital asset investors worldwide,” Barlow said.
Founded in 2018 by Hany Rashwan and Ophelia Snyder, 21Shares has become a dominant player in the crypto ETP sector. As of September 2025, it managed more than $11 billion in assets across 55 listed products, offering exposure to leading cryptocurrencies such as Bitcoin, Ethereum, and Solana through regulated exchanges.
Strengthening Ties Between Crypto and Traditional Finance
FalconX’s acquisition of 21Shares comes as regulated digital asset products gain traction among investors seeking secure, transparent access to crypto markets. Exchange-traded products offer a familiar format for those who prefer to invest through regulated stock exchanges rather than directly holding cryptocurrencies.
The deal underscores FalconX’s belief that the next phase of crypto adoption will be driven by institutions and mainstream investors entering through compliant, transparent products. The partnership also reflects a growing industry trend: crypto firms aligning with financial institutions to offer regulated access to digital assets.
Building for the Next Phase of Institutional Adoption
Beyond its acquisitions, FalconX has been an active player in building infrastructure for institutional digital asset markets. The company recently joined Crypto.com, Galaxy, and Wintermute as a launch partner for Lynq, a new settlement platform for digital assets and financial institutions. Developed with Arca Labs, Tassat Group, and tZERO, Lynq is designed to address regulatory and counterparty risk challenges as institutional participation increases.
For FalconX, the addition of 21Shares signals a deeper commitment to bridging the gap between crypto-native innovation and traditional financial systems. With its trading scale, product expertise, and growing global partnerships, the company is positioning itself to lead the next wave of regulated crypto investment solutions.
As crypto markets mature and global regulations tighten, deals like FalconX’s acquisition of 21Shares are becoming key markers of how the industry is evolving—less about speculation, and more about building long-term, trusted access to digital assets for investors around the world.
