Crypto Prime Broker FalconX to Buy ETF Provider 21Shares: WSJ

**FalconX Acquires 21Shares in Major Crypto ETF Expansion Move**

Cryptocurrency prime broker FalconX has announced its acquisition of leading ETF provider 21Shares, marking a significant strategic expansion into the rapidly growing crypto exchange-traded fund sector. This undisclosed-value deal positions FalconX to diversify beyond its core market making and liquidity services, targeting the booming institutional cryptocurrency adoption market.

The acquisition comes as crypto ETFs experience unprecedented institutional demand, with Bitcoin and Ethereum ETFs driving mainstream blockchain investment adoption. FalconX's move into ETF issuance represents a strategic pivot to capture institutional DeFi and cryptocurrency investment flows, leveraging 21Shares' established ETF expertise and regulatory relationships.

This consolidation reflects the maturing cryptocurrency infrastructure landscape, where prime brokers are expanding service offerings to meet growing institutional demand for regulated crypto investment products. The deal strengthens FalconX's competitive position against traditional financial institutions entering the digital asset space, while providing institutional clients comprehensive cryptocurrency trading, liquidity, and investment product access under one platform. Market analysts view this acquisition as indicative of continued institutional cryptocurrency adoption and the evolution of crypto financial services.