Prime Broker FalconX Acquires 21Shares to Expand into Crypto ETFs
US-based institutional prime dealer FalconX has agreed to purchase 21Shares, a number one Swiss-based crypto asset supervisor identified for its in depth suite of exchange-traded merchandise (ETPs).
The phrases of the deal haven’t been disclosed.
21Shares Acquisition
The acquisition positions FalconX to expand past its conventional strengths in market making and liquidity companies into the quickly rising area of crypto ETFs and structured merchandise, in accordance to an unique report by WSJ. With 21Shares’ established distribution community and experience in product engineering, which boasts greater than $11 billion in property throughout Bitcoin, Ethereum, and token-specific baskets in Europe, FalconX features fast scale and a ready-made platform to develop derivative-focused and crypto funds.
The deal comes amid a broader trade push towards providing buyers entry to extra subtle crypto exposures, together with staking methods, smaller tokens, and controlled spinoff wrappers. FalconX has already launched a 24/7 over-the-counter choices platform final month, masking Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and different digital property.
21Shares, however, lately reached a milestone by itemizing 50 crypto exchange-traded merchandise (ETPs) throughout Europe.
Crypto M&A Frenzy
The acquisition of 21Shares is indicative of a wider wave of M&A exercise within the sector, which has been fueled partly by a extra accommodating regulatory local weather within the US this yr.
Other important transactions that depict the pattern embrace Coinbase completing its $2.9 billion acquisition of Deribit in a bid to increase its derivatives buying and selling capabilities. More lately, Coinbase acquired Echo, a well-liked platform for early-stage crypto fundraising, in a $375 million deal combining money and inventory.
Meanwhile, Kraken acquired Small Exchange, a US Commodity Futures Trading Commission (CFTC)-licensed Designated Contract Market (DCM), from IG Group for $100 million final week. Prior to that, the crypto alternate had introduced its plans to purchase retail futures buying and selling platform NinjaTrader for $1.5 billion, to increase into a number of asset courses and develop its person base.
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