Key Takeaways
- FalconX is set to acquire 21shares.
- The deal follows Bitwise’s acquisition of ETC Group last year.
- Meanwhile, CoinShares is targeting U.S. expansion via a Nasdaq listing.
A series of mergers and acquisitions has targeted the crop of asset managers that pioneered crypto Exchange-Traded Products (ETPs) in Europe.
In the latest instance of the trend, FalconX is set to acquire 21shares, a crypto native ETP issuer that has come a long way from its Swiss roots.
FalconX To Acquire 21shares
On Oct. 22, the American digital asset brokerage FalconX announced that it had agreed to acquire 21shares.
Under the deal, the terms of which weren’t disclosed, 21shares will continue to operate independently. Meanwhile, FalconX will secure a foothold in the rapidly expanding market for crypto ETPs.
While the exact structure varies (notes in Europe, funds in the U.S.), crypto ETPs have taken off on both sides of the Atlantic in recent years.
Through a partnership with Ark Invest, 21shares was one of the first asset managers to list Bitcoin ETFs in the U.S.
Likewise, after the Financial Conduct Authority lifted a restriction that prevented retail investors from accessing exchange-traded notes with crypto exposure, 21shares wasted no time bringing retail-friendly ETPs to the London Stock Exchange.
Commenting on the FalconX acquisition, 21shares’ U.K. head, Alex Pollack, said it reflects a strong interest in ETP issuers.
“I think the deal shows that they really wanted to add an ETP business,” he observed.
However, he stressed that the takeover won’t affect 21shares’ existing services.
“From an end client perspective, you’re not going to see any change at all,” he stated.
Transatlantic Consolidation
FalconX’s bid to acquire 21Shares isn’t the first time an American company has snapped up one of Europe’s crypto ETP providers.
It was just over a year ago that Bitwise first entered the EU market via its acquisition of ETC Group.
Meanwhile, Europe’s largest digital-asset manager, CoinShares, is moving in the opposite direction.
In September, the company announced plans to list on the Nasdaq via a merger with Vine Hill Capital Investment Corp., a Special Purpose Acquisition Company (SPAC).
“The transaction is expected to fuel CoinShares’ strategic international expansion […] , including expected growth in the United States,” the company stated in an announcement.
James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
