FalconX has announced an acquisition of 21Shares, combining prime brokerage infrastructure with the world’s largest crypto ETP platform.

FalconX Pushes Into Crypto ETFs & ETPs With 21Shares Acquisition

As announced in a press release, FalconX has agreed to acquire 21Shares. FalconX is an institutional crypto prime brokerage that provides large clients with deep global liquidity, derivatives, financing, custody, and settlement across digital asset markets. It has facilitated over $2 trillion in trading volume and hosts a global client base of more than 2,000 institutions.

Meanwhile, 21Shares is the largest issuer of crypto exchange-traded funds and products (ETFs/ETPs). ETFs/ETPs refer to investment vehicles that allow investors to gain exposure to an underlying asset without directly having to own it. When a trader invests into one of these vehicles, the provider buys and custodies the asset on their behalf.

Some investors may be wary of navigating crypto exchanges and wallets, so products like ETFs and ETPs provide for a more regulated means of investment into digital assets, in a mode that’s more familiar.

21Shares has 55 of these products listed currently, across which it manages over $11 billion in assets. With the acquisition, its asset management product development and distribution capabilities will be combined with FalconX’s institutional-grade infrastructure.

The press release noted:

Together, the two firms will accelerate the creation of tailored investment products that meet growing institutional and retail demand for regulated digital asset exposure.

While FalconX is acquiring 21Sha

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Author: Keshav Verma