FalconX will acquire 21shares, one of the largest crypto asset managers, as it seeks to expand its footprint in the rapidly growing cryptocurrency ETF market, the company announced Wednesday. The terms of the deal were not disclosed.
The move follows the SEC’s approval of new spot crypto ETFs, paving the way for investment products tied to assets such as solana and dogecoin. The acquisition positions FalconX to capitalize on rising institutional demand for regulated digital asset exposure.
Founded in 2018, 21shares manages more than $11 billion in crypto assets across dozens of exchange-traded products. FalconX said it will integrate 21shares’ ETF capabilities into its trading and brokerage operations to broaden access to crypto investment opportunities.
“With the SEC clearing the way for broader ETF listings, this acquisition gives FalconX the tools to lead in the next phase of crypto-financial innovation,” said Michael Ashley Schulman of Running Point Capital Advisors.
FalconX, valued at $8 billion in 2022, has processed over $2 trillion in trading volume for 2,000 institutional clients. However, the broader market remains volatile amid renewed trade tensions with China and regulatory uncertainty tied to a potential U.S. government shutdown that could delay ETF approvals.
The deal underscores how crypto-native firms are racing to merge traditional financial instruments with digital asset ecosystems. As one of the first crossovers between a crypto broker-dealer and a crypto ETF pioneer, FalconX’s acquisition of 21shares could reshape how institutional investors access the digital economy.
