FalconX acquires Swiss asset manager 21Shares, a pioneer in crypto ETFs, marking a strategic transformation for the company as it enters the world of cryptocurrency investment products.
FalconX acquires ETF giant, 21Shares
Institutional broker FalconX makes a significant move by announcing the acquisition of Swiss asset manager 21Shares, a global pioneer in cryptocurrency-related stock products. While the terms of the deal remain undisclosed, the impact is clear: FalconX is scaling up and stepping into the world of crypto ETFs, a sector symbolic of institutional adoption.
From liquidity to investment product
Previously known for its role in providing liquidity, execution, and brokerage services to institutions, FalconX’s latest acquisition marks a direct foray into asset management and financial product creation. The company led by Raghu Yarlagadda is now looking to transform liquidity into investment instruments.
This strategic shift comes amidst the explosive growth in the crypto ETF market following the approval of the first ETF Bitcoin Spot in the US. By integrating a reputable issuer like Zurich-based 21Shares, FalconX aims to secure a leading position as the line between traditional and digital finance blurs.
21Shares, a crypto finance pioneer in Europe
Founded in Switzerland, 21Shares was among the first to offer financial products linked to Bitcoin, Ethereum, and other cryptocurrencies long before these products reached US shores. With over 50 ETPs listed in Europe, the company has established itself as a benchmark on the continent.
By designing and distributing regulated products in strict jurisdictions such as Switzerland, Germany, and France, 21Shares became indispensable for European institutional investors. FalconX’s integration not only opens doors to the ETF market but also to a strategic network of regulated infrastructures and institutional partners.
A consolidation reshaping crypto finance
This alliance reflects a growing trend of merging market players and ETF issuers. Amidst increasing competition between traditional finance giants like BlackRock and Fidelity and Web3 natives, FalconX opts for a hybrid approach combining technology, liquidity, and structured products.
In the long run, this strategy could position FalconX as a global player offering trading, custody, and regulated investment vehicles, competing with Coinbase Institutional and Galaxy Digital while attracting institutional capital seeking exposure to Bitcoin and Ethereum through compliant and liquid channels.
The message is clear: the battle for crypto ETFs is heating up, and FalconX aims to play a central role.
