FalconX to Acquire ETF Manager 21Shares in Strategic Move

According to BlockBeats, FalconX, a cryptocurrency trading firm, is set to acquire ETF management company 21Shares. Executives from both companies revealed that the merged entity will focus on developing crypto funds centered around derivatives and structured products. The transaction will be financed through a mix of cash and equity, though specific terms have not been disclosed. FalconX was co-founded by Raghu Yarlagadda in 2018 and has facilitated over $2 trillion in cryptocurrency transactions for more than 2,000 institutional clients. Yarlagadda noted that the private company raised $150 million in venture funding in 2022, reaching a valuation of $8 billion, and is currently considering an initial public offering (IPO). Founded in 2018, 21Shares manages 55 listed exchange-traded products with assets exceeding $11 billion as of September. The company is renowned for launching one of the first U.S. spot Bitcoin ETFs in collaboration with Cathie Wood's ARK Investment Management in 2024.