FalconX Reportedly Set to Acquire 21Shares in Major Crypto Fund Deal

Core Insights - FalconX is in talks to acquire 21Shares, a major player in the digital asset ETP market, with the deal to be financed through cash and equity [1] - The merger aims to leverage FalconX's trading infrastructure and 21Shares' ETF expertise to launch new crypto funds focused on derivatives and structured products [1][4] Company Overview - FalconX, founded in 2018, has processed over $2 trillion in trades and serves more than 2,000 clients globally, specializing in institutional trading, staking, and credit services, with an $8 billion valuation in 2022 [2] - 21Shares, also established in 2018, manages over $11 billion in assets across 55 listed ETPs and co-launched the first US spot Bitcoin ETF in partnership with ARK Investment [3] Market Context - The merger represents a significant consolidation in the crypto space, coinciding with a potential new "ETF season" as institutional interest in crypto investment vehicles surges [5] - There are currently 155 crypto ETP filings across 35 cryptocurrencies, with predictions that this number could exceed 200 within the next year [6]