FalconX buys 21Shares – another mega deal in the US crypto sector

The crypto trading platform FalconX has announced the acquisition of 21Shares, one of the largest providers of crypto exchange-traded funds (ETFs). According to the company, the combined business model will focus on derivatives and structured crypto funds to facilitate access to more complex investment products for institutional investors.
Financial details of the deal were not disclosed. According to insiders, the transaction was financed with a mix of cash and equity. FalconX, founded in 2018 by Raghu Yarlagadda, has processed more than $2 trillion in crypto trading volume for over 2,000 institutional clients. The company is currently valued at around $8 billion and, according to Yarlagadda, is now considering an IPO.
21Shares, also founded in 2018, manages over $11 billion in assets across 55 listed crypto products. The company rose to prominence by launching one of the first US spot Bitcoin ETFs in partnership 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 occurring through traditional vehicles. This is a fundamental shift in the market structure,” said FalconX CEO Raghu Yarlagadda. The merger will enable new investment products to be brought to market more quickly.

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