FalconX said that it will purchase 21Shares, a crypto investment management company, in an effort to increase the number of exchange-traded funds it offers.
21Shares, which was founded in 2018 by Hany Rashwan and Ophelia Snyder, currently oversees hundreds of products and more than $11 billion in assets.
Falcon acquires 21Shares
FalconX intends to promote the uptake of digital asset investment products by utilising 21shares’ brokerage platform and knowledge of crypto ETFs.
Just over a month has passed since Wall Street’s top regulator eliminated the final obstacle to dozens of new spot ETFs linked to cryptocurrencies like Dogecoin and Solana.
The agreement’s conditions were not made public. After years of hardship and a court battle that led to the first Bitcoin ETF being approved in January 2024, the Trump administration has finally allied itself with the digital assets sector by providing long-awaited regulatory certainty.
The U.S. government shutdown may limit the SEC’s capacity to examine and approve these registrations, even though the agency’s new requirements are anticipated to unleash a swarm of crypto ETFs.
Also Read: Ondo Finance Acquires Oasis Pro, Gaining Full Suite Of SEC-Registered Digital Asset Licenses
The Leaders POV
“We’re witnessing a powerful convergence between digital assets and traditional financial markets, as crypto ETPs (exchange-traded products) open new channels for investor participation through regulated, familiar structures,” said FalconX CEO Raghu Yarlagadda.
A new avenue for competition has been made possible by the development of spot Bitcoin and Ethereum exchange-traded products.
Trading companies and asset managers are racing to provide investors with regulated wrappers that allow them to access smaller tokens, staking plans, and derivative exposures.
Other related developments
A major advancement in the integration of digital assets with conventional financial infrastructure has been marked by FalconX’s announcement of a strategic relationship with the multinational banking behemoth Standard Chartered.
This partnership, marks FalconX’s first deal with a significant international bank, demonstrates institutional investors’ increasing desire for safe, regulated access to the cryptocurrency market.
Additionally, the action comes after FalconX recently pushed its product into institutional derivatives. The company launched a round-the-clock over-the-counter options platform last month that accepts a variety of tokens, including Bitcoin, Ethereum, and Solana.
This year, industry deal-making has increased in tandem with more lenient U.S. regulations. A lot of prominent institutions have come together for acquisitions or partnerships to grow into a meaningful deal and technological advancement. This shows that the development is quite rapid when it comes to a fast-paced industry like the crypto and blockchain space.