Digital asset prime brokerage FalconX has entered an agreement to acquire ETF provider 21shares, as part of the firm’s effort to enhance its suite of digital asset investment products.
Raghu Yarlagadda
Specifically, the acquisition is set to combine 21shares’ asset management product development and distribution expertise with FalconX’s digital asset infrastructure and risk management platform, to deliver tailored investment products for both institutional and retail investors.
The move is also expected to support FalconX in building out its listed markets and digital assets offering, and bolster its footprint in the US, Europe and Asia-Pacific regions.
Raghu Yarlagadda, chief executive of FalconX, said: “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.”
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Zurich-headquartered 21shares currently offers the world’s largest suite of cryptocurrency exchange-traded funds and products (ETFs/ETPs) and manages more than $11 billion is assets across 55 listed products.
As part of the acquisition, 21shares will come under the FalconX umbrella, but will remain independently managed, and chief executive Russell Barlow will continue to lead the business.
“Our goal has been to make crypto investing available to everyone through industry-leading exchange-traded products,” said Barlow.
“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.”
The acquisition follows recent efforts by FalconX to enhance its global footprint, and in July, the firm expanded into Latin America, supporting two of the region’s largest financial institutions, investment bank BTG Pactual and Brazilian cryptocurrency exchange Mercado Bitcoin.