The crypto trading platform FalconX has announced its acquisition of 21Shares, one of the largest providers of exchange-traded crypto funds (ETFs). According to the company, the combined business model will focus on derivative and structured crypto funds to make complex investment products more accessible to institutional investors.
Financial details of the deal were not disclosed. According to insiders, the transaction was financed through a mix of cash and equity. Founded in 2018 by Raghu Yarlagadda, FalconX has processed over $2 trillion in crypto trading volume for more than 2,000 institutional clients. The company is currently valued at around $8 billion and is reportedly considering an IPO, according to Yarlagadda.
21Shares, also founded in 2018, manages over $11 billion in assets across 55 listed crypto products. The company gained prominence for launching one of the first US spot Bitcoin ETFs in collaboration with Cathie Wood’s ARK Invest in 2024. The merger comes at a time when Bitcoin ETFs from investment giants like BlackRock and Fidelity are seeing massive capital inflows, forcing the industry to rethink its product structure.
“Bitcoin flows are now happening through traditional vehicles. That’s a fundamental shift in market structure,” said FalconX CEO Raghu Yarlagadda. The merger, he added, will enable the companies to bring new investment products to market more quickly.