Crypto brokerage FalconX is set to acquire 21Shares, one of the largest crypto ETF issuers in the world, according to a report by The Wall Street Journal.
While the financial details remain undisclosed, sources familiar with the deal confirmed that the acquisition will be financed through a mix of cash and equity.
Following the merger, the two companies plan to focus on developing crypto-based derivatives and structured financial products, leveraging their combined expertise to expand institutional-grade offerings.
“Bitcoin flows are increasingly moving through what we call traditional wrappers, marking a fundamental shift in the market structure,” said Raghu Yarlagadda, CEO of FalconX.
He added that the unified company will be able to bring new financial instruments to market more efficiently, positioning itself as a bridge between digital assets and traditional finance.
The WSJ also reports that FalconX is considering an initial public offering (IPO) amid a resurgence of M&A activity in the crypto sector.
Earlier this month, Ripple Labs announced a $1 billion acquisition of GTreasury to strengthen its foothold in corporate treasury management — signaling that consolidation in the digital asset space is far from slowing down.
