In a move that marks an acceleration in the convergence between digital assets and traditional finance, FalconX, a leading institutional prime brokerage in the crypto sector, has announced the acquisition of 21shares, the world’s largest provider of cryptocurrency ETFs and ETPs.
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By ETFWorld.co.uk
Raghu Yarlagadda, CEO of FalconX
The deal, announced on October 22, 2025, combines FalconX’s brokerage infrastructure with 21shares’ exchange-traded product platform, with the goal of developing more sophisticated and tailored digital asset investment products for institutional and retail demand.
A Strategic Transaction in the ETP Market
This acquisition represents one of the most significant deals in the Exchange-Traded Products (ETP) industry in recent years. It combines 21shares’ expertise in product development and distribution with FalconX’s institutional-grade infrastructure, structuring capabilities, and risk management platform.
For FalconX, this is the third strategic transaction in 2025, following the integration of Arbelos Markets and the acquisition of a majority stake in Monarq Asset Management, a clear signal of its intent to strengthen its global presence in trading, asset management, and market infrastructure.
Key Data of the Agreement
The following table summarizes the key data of the two companies involved in the acquisition.
| Company | Role | Founded | Key Metrics | Leadership |
|---|---|---|---|---|
| FalconX | Digital asset prime brokerage | N.D. | – Facilitated trading volume: over $2 trillion – Institutional clients: over 2,000 – Third strategic acquisition in 2025 | CEO: Raghu Yarlagadda |
| 21shares | Cryptocurrency ETF/ETP provider | 2018 | – Assets under management (AUM): over $11 billion – Listed products: 55 – First company to list a physically-backed crypto ETP (2018) | Co-founders: Hany Rashwan and Ophelia Snyder CEO: Russell Barlow |
The Vision of the Leaders
The leaders of both companies emphasized the strategic logic of the agreement, highlighting how it unites two fundamental pieces of the ecosystem.
Raghu Yarlagadda, CEO of FalconX, stated: “21shares has built one of the most trusted and innovative product platforms in digital assets. We’re witnessing a powerful convergence between digital assets and traditional financial markets, as crypto ETPs open new channels for investor participation through regulated, familiar structures. FalconX has built the institutional backbone for trading, derivatives, and credit, and extending that infrastructure into listed markets through 21Shares is a natural next step toward strengthening market efficiency. For FalconX, this is a deliberate, long-term investment in building durable enterprise value across market cycles.”
The co-founders of 21shares, Hany Rashwan and Ophelia Snyder, stated: “Over the past 8 years, we have built the 21shares business from $0 to more than $11 billion in AUM. We have scaled to reach millions of customers in every corner of the globe and brought them into crypto with our products and our research. We are sincerely looking forward to FalconX continuing to build on this strong foundation for the next chapter of 21shares’ development.”
Russell Barlow, CEO of 21shares, added: “Our goal has been to make crypto investing available to everyone through industry-leading exchange-traded products. Now FalconX will enable us to move faster and expand our reach. Together, we’ll pioneer solutions that will meet the evolving needs of digital asset investors worldwide.”
Operational Strategy and Market Context
Upon completion of the deal, 21shares will continue to be managed independently under the FalconX umbrella. Russell Barlow will remain CEO of the company, and no changes are planned to the construction or investment objectives of the existing 21shares ETPs in Europe or ETFs in the United States.
The agreement comes at a crucial time for the market. Just over a month ago, Wall Street’s top regulator removed the last hurdle for dozens of new spot crypto ETFs, from Solana to Dogecoin, with the Trump administration showing greater openness to the sector. According to some market expectations, over 100 products on at least 35 different crypto assets are anticipated.
Beyond simple spot ETPs, the combined company will prioritize the development of crypto derivative funds and structured crypto funds, aiming for more complex and sophisticated investment products.
Source: ETFWorld.co.uk
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