Prime Broker FalconX Acquires 21Shares to Expand into Crypto ETFs

The cryptocurrency trade continues attracting US-based establishments, mirrored within the latest main acquisition information.

US-based institutional prime dealer FalconX has agreed to accumulate 21Shares, a number one Swiss-based crypto asset supervisor identified for its in depth suite of exchange-traded merchandise (ETPs).

The phrases of the deal haven’t been disclosed.

21Shares Acquisition

The acquisition positions FalconX to expand past its conventional strengths in market making and liquidity providers into the quickly rising area of crypto ETFs and structured merchandise, in accordance with an unique report by WSJ. With 21Shares’ established distribution community and experience in product engineering, which boasts greater than $11 billion in belongings throughout Bitcoin, Ethereum, and token-specific baskets in Europe, FalconX beneficial properties quick scale and a ready-made platform to develop derivative-focused and crypto funds.

The deal comes amid a broader trade push towards providing traders entry to extra subtle crypto exposures, together with staking methods, smaller tokens, and controlled spinoff wrappers. FalconX has already launched a 24/7 over-the-counter choices platform final month, overlaying Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and different digital belongings.

21Shares, alternatively, lately reached a milestone by itemizing 50 crypto exchange-traded merchandise (ETPs) throughout Europe.

Crypto M&A Frenzy

The acquisition of 21Shares is indicative of a wider wave of M&A exercise within the sector, which has been fueled partially by a extra accommodating regulatory local weather within the US this yr.

Different important transactions that depict the pattern embody Coinbase completing its $2.9 billion acquisition of Deribit in a bid to broaden its derivatives buying and selling capabilities. Extra lately, Coinbase acquired Echo, a well-liked platform for early-stage crypto fundraising, in a $375 million deal combining money and inventory.

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In the meantime, Kraken acquired Small Alternate, a US Commodity Futures Buying and selling Fee (CFTC)-licensed Designated Contract Market (DCM), from IG Group for $100 million final week. Previous to that, the crypto change had introduced its plans to purchase retail futures buying and selling platform NinjaTrader for $1.5 billion, to broaden into a number of asset lessons and develop its person base.