FalconX to buy out crypto asset ETF firm 21Shares
Crypto trading platform FalconX is planning to acquire ETF asset manager firm 21Shares in one of the largest mergers in the cryptocurrency financial industry this year.
- FalconX will acquire 21Shares, one of the largest crypto-focused asset managers, in an undisclosed deal that would merge the two companies into one.
- The deal comes amid a surge in crypto ETF activity following the SEC’s shorter approval timeline, with 155 new filings across 35 digital assets and billions flowing into products like the ARK 21Shares Bitcoin ETF.
According to a report by the Wall Street Journal, the digital asset trading platform FalconX is set to acquire one of the largest managers of exchange-traded funds in a landmark deal. Executives from both companies confirmed that the merger would establish a combined company that would focus on developing crypto funds centered around derivatives and structured products.
The amount of funds used to acquire 21Shares was not disclosed by either company, but it was revealed that the deal was financed through a mix of cash and equity.
The acquisition comes at a time when crypto ETFs are picking up speed after the Securities and Exchange Commission significantly shortened the approval timeline for ETFs from 270 days to just 75 days. The decision gave way to a rise in crypto-backed ETF applications, with asset managers scrambling to apply for more crypto ETFs in hopes of bringing them into the market.
According to data from Solid Intel, the number of crypto ETF filings has surged to 155 within the span of a year, spanning across 35 digital assets.
Established in 2018, 21Shares has grown into one of the largest crypto-focused asset management firms, handling more than $11 billion in assets across 55 listed exchange-traded products as of September 2025. 21Shares is well regarded for launching one of the first spot Bitcoin ETFs ( BTC ) in the U.S in partnership with Cathie Wood’s ARK Investment Management, ARK 21Shares Bitcoin ETF.
At press time, ARK 21Shares Bitcoin ETF has seen inflows amounting to $162.85 million within the past 24 hours, trailing just behind BlackRock’s IBIT with inflows of $210.9 million. The product’s cumulative net inflow has increased to $2.22 billion as of Oct. 22.
Overall, the U.S BTC Spot ETF market has seen a total of $477.19 million inflows, with Ark & 21 Shares’ Bitcoin ETF being in the top five largest contributors.
FalconX expands into structured products through 21Shares
As the number of crypto ETFs increases, so does investor appetite for more structured crypto products. The crypto ETF market started off with funds backed mostly by Bitcoin and Ethereum ( ETH ); now it has expanded with the launch of ETFs that invest in smaller altcoins.
FalconX co-founder Raghu Yarlagadda said that through the merger, the combined company will be able to bring products into the market at a faster pace.
“Bitcoin flows are now happening through what we call traditional wrappers, and that’s a fundamental shift in market structure,” said Yarlagadda in a statement to the Wall Street Journal.
FalconX started primarily as a prime brokerage and trading infrastructure firm that offers services such as liquidity provision and over-the-counter options, while 21Shares has product‐management expertise in issuing ETPs that track the value of underlying crypto assets.
The acquisition provides FalconX with an instant foundation in terms of getting its foot in the door for regulated investment vehicles instead of having to build them from scratch. With a bigger platform, the combined company could accelerate product launch, offer more crypto-backed products globally, and possibly attract larger institutional clients.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Hyperliquid News Today: Bitget Wallet Simplifies DeFi Access for 80 Million Users Through HyperEVM Integration
- Bitget Wallet integrates HyperEVM, enabling 80M users to access Hyperliquid's $5B TVL DeFi ecosystem via cross-chain transfers and dApps. - Hyperliquid's high-performance DEX with onchain order books now supports smart contracts, linking institutional-grade liquidity to self-custody users. - The integration simplifies multi-chain activity through one-click network addition and aggregator routes like LiquidLaunch. - Bitget's 130+ blockchain support and $700M+ user protection fund reinforce its role as a b
CVC Shares Increase by 0.16% Following Banijay's $5.4 Billion Acquisition of Tipico Stake
- French media giant Banijay acquires 65% of German sports betting firm Tipico for €4.6B, creating Europe's largest online gaming operator with 6.5M players. - The €3B-funded deal will merge Tipico with Banijay's Betclic brand under Banijay Gaming, headquartered in Malta, with plans to increase ownership to 72% via call options. - CEO François Riahi highlighted strategic expansion into digital entertainment, projecting €100M annual cost synergies and regulatory compliance through Bet-at-Home stake sales. -
Arc's "Economic OS" Launches Public Testnet, Partnering with Over 100 Institutions
- Circle's Arc blockchain launches public testnet with 100+ institutions including Visa, HSBC, and BlackRock. - Designed as an "Economic OS," Arc enables instant settlements, privacy controls, and compliance-driven stablecoin ecosystems using USDC as gas token. - Partners like BNY Mellon and AWS test infrastructure supporting tokenized assets, AI-driven payments, and global market integration across four continents. - Circle emphasizes regulatory alignment (e.g., EU MiCA) and plans to transition Arc to com

Is it possible for AI stocks to bounce back, or will the regulatory advantages of crypto reshape the industry?
- AI sector faces 2025 challenges as BigBear.ai and C3.ai report revenue declines due to federal spending cuts and leadership changes. - C3.ai's stock drops 50% amid CEO departure and shareholder lawsuits over alleged business misrepresentations. - Crypto platform IPO Genie ($IPO) emerges as compliance-focused alternative with STO model, CertiK audits, and Fireblocks custody. - $IPO targets $100M AUM by 2026, offering institutional-grade private market access to retail investors via AI-powered deal curatio

