By Ateev Bhandari and Arasu Kannagi Basil
(Reuters) -FalconX said on Wednesday it would buy crypto investment management firm 21shares for an undisclosed amount, as the digital assets trading firm bolsters its exchange-traded funds business.
The deal comes just over a month after Wall Street’s top regulator removed the last remaining hurdle to dozens of new spot ETFs tied to cryptocurrencies ranging from solana to dogecoin.
Founded in 2018 by Hany Rashwan and Ophelia Snyder, 21shares now manages over $11 billion in assets across dozens of products.Â
FalconX plans to leverage 21shares’ expertise in crypto ETFs and its brokerage platform to advance the adoption of digital asset investment products.
“With the U.S. SEC streamlining listing pathways, this sets them up to be both the pit crew and the driver as the market moves beyond only bitcoin and ether wrappers,” said Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors.Â
Although updated standards from the Securities and Exchange Commission are expected to unleash a flurry of crypto ETFs, the U.S. government shutdown could curb the agency’s ability to review and approve these filings.
Concerns are also mounting over highly leveraged funds tracking crypto and related companies. Earlier this month, the sector saw its largest selloff ever after U.S. President Donald Trump renewed trade tensions with China.
FalconX, which was valued at $8 billion in a 2022 funding round, has facilitated over $2 trillion in trading volume and has a client base exceeding 2,000 institutions.
(Reporting by Ateev Bhandari and Arasu Kannagi Basil in Bengaluru; Editing by Sahal Muhammed and Sriraj Kalluvila)
