Prime broker FalconX to buy 21Shares amid crypto M&A spree: report

FalconX, a U.S.-based institutional crypto prime broker, has agreed to acquire 21Shares, one of the largest managers of exchange-traded products for digital assets.

Wednesday’s deal is poised to combine 21Shares’ distribution and ETP expertise with FalconX’s trading and prime-brokerage infrastructure as the pair looks to launch derivative-focused and structured crypto funds, fielding products that go beyond plain-vanilla spot ETPs, The Wall Street Journal reported. Financial terms were not disclosed at the time of writing.

The success of spot Bitcoin and Ethereum exchange-traded products has opened a new competitive front. Asset managers and trading firms are racing to offer investors access to smaller tokens, staking strategies, and derivative exposures via regulated wrappers.

21Shares is already known for a broad suite of ETPs and single-asset products — with over $11 billion in assets across bitcoin and ether ETPs to token-specific and basket offerings in Europe and other jurisdictions — which gives FalconX ready distribution and product engineering capabilities.

The move also follows FalconX’s recent product push into institutional derivatives. Last month, the firm rolled out a 24/7 over-the-counter options platform that supports Bitcoin, Ethereum, Solana, and other tokens.

More broadly, industry deal-making has accelerated alongside a friendlier U.S. regulatory tone this year. Other notable transactions include Coinbase’s $2.9 billion purchase of Deribit, Kraken’s recent acquisition of Small Exchange to expand U.S. derivatives capabilities, and Kraken’s earlier agreement to buy NinjaTrader for $1.5 billion. Coinbase also agreed to buy crypto investment platform Echo for about $375 million.