FalconX agrees to acquire 21Shares to expand crypto derivatives and ETP offerings amid rising digital asset M&A activity.
FalconX has reached an agreement to acquire 21Shares, a leading global issuer of crypto exchange-traded products (ETPs).
The move adds to a growing wave of mergers and acquisitions across the digital asset sector. This is as firms seek to expand offerings and scale operations.
Deal Combines Trading Infrastructure with ETP Product Expertise
The acquisition will combine FalconX’s trading and brokerage infrastructure with 21Shares’ experience in structuring and distributing ETPs. The deal, reported by The Wall Street Journal, aims at developing new crypto fund offerings, including structured products and derivatives.
FalconX has been focused on serving institutional clients with a range of digital asset services.
Meanwhile, 21Shares manages over $11 billion in crypto ETPs across Europe and other jurisdictions. Its products include single-asset funds for Bitcoin and Ethereum, as well as diversified crypto baskets.
Expansion into Derivatives and Structured Crypto Products
FalconX has recently entered the institutional derivatives space.
Last month, it launched a 24/7 over-the-counter options platform supporting Bitcoin, Ethereum, Solana, and other tokens. The company is positioning itself to meet rising demand for advanced crypto investment products.
With 21Shares onboard, FalconX will be able to expand its product range beyond spot ETPs. The new offerings are expected to focus on derivatives, staking-based products, and structured strategies tailored to institutional needs.
This strategic move reflects an increasing trend among digital asset firms to offer broader financial solutions using regulated investment vehicles.
Crypto M&A Activity Increases with Supportive Regulatory Tone
This acquisition is part of a broader trend in crypto industry consolidation. Regulatory clarity in the U.S. has contributed to a rise in M&A activity among major firms.
Coinbase recently acquired Deribit for $2.9 billion and Echo for $375 million, while Kraken bought Small Exchange and agreed to acquire NinjaTrader for $1.5 billion.
The FalconX-21Shares deal fits into this trend, signaling that firms are preparing for the next phase of growth in the digital asset market. By combining infrastructure, product development, and distribution, both companies aim to scale globally with a full suite of institutional solutions.
Crypto-trading firm FalconX agreed to acquire 21shares, a manager of ETFs that invest in digital assets https://t.co/pxMN1ehoMo
— WSJ Markets (@WSJmarkets) October 22, 2025
The deal is expected to close pending regulatory approval, although financial details have not been disclosed.
