FalconX is reportedly set to acquire leading ETP issuer 21Shares in a deal aimed at developing derivatives-based crypto funds.
Institutional crypto trading firm FalconX is reportedly in talks to acquire 21Shares, one of the largest digital asset exchange-traded product (ETP) issuers globally. The deal will be financed through a mix of cash and equity.
The specific terms of this acquisition are not disclosed yet. However, executives from both firms confirmed that the merged entity will focus on launching crypto funds built around derivatives and structured investment products.
FalconX and 21Shares: Merging Trading Power With ETF Expertise
Founded in 2018 by Raghu Yarlagadda, FalconX has rapidly become a leading player in institutional crypto services. It has processed more than $2 trillion in trades and serves over 2,000 clients worldwide.
The company specializes in institutional trading, staking, and credit services, and reached an $8 billion valuation in its 2022 funding round.
Meanwhile, Zurich-based 21Shares, also founded in 2018, manages over $11 billion in assets across 55 listed exchange-traded products.
The firm had co-launched the first US spot Bitcoin ETF in partnership with ARK Investment.
Additionally, 21Shares has built one of the largest portfolios of altcoin ETPs, with products spanning Solana SOL $130.0 24h volatility: 1.6% Market cap: $73.35 B Vol. 24h: $5.18 B , Dogecoin DOGE $0.13 24h volatility: 0.5% Market cap: $21.16 B Vol. 24h: $1.24 B and diversified crypto indexes.
Report states that the merger aims to combine FalconX’s liquidity, custody, and derivatives infrastructure with 21Shares’ expertise in ETF design and distribution.
According to The Wall Street Journal, crypto trading firm FalconX has agreed to acquire 21Shares. Executives from both companies said the merged entity will focus on developing crypto funds based on derivatives and structured products. Deal terms were not disclosed, but the…
— Wu Blockchain (@WuBlockchain) October 22, 2025
ETF Momentum Builds
The deal marks one of the most significant consolidations between a trading platform and an ETF manager in the crypto space. It comes at a time when many analysts believe the market may be entering a new “ETF season.”
Bloomberg’s senior ETF analyst Eric Balchunas recently noted that there are now 155 crypto ETP filings spanning 35 different cryptocurrencies, reflecting a surge in institutional interest.
Balchunas describes the wave of new filings as a potential “land rush” for crypto investment vehicles. He predicts that the number of products could exceed 200 within the next year.
There’s now 155 crypto ETP filings tracking 35 different digital assets. Could easily end up seeing over 200 hit mkt in next 12mo. Total land rush. Here’s the list by coin, amazing work from @JSeyff pic.twitter.com/dKyiySxn0H
— Eric Balchunas (@EricBalchunas) October 21, 2025
Meanwhile, spot Bitcoin ETFs recorded a net inflow of $477.2 million on October 21 amid renewed bullish momentum.
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