Institutional crypto prime broker FalconX announced its acquisition of 21Shares, a leading issuer of cryptocurrency exchange-traded products (ETPs).
This deal, reported by outlets including the Wall Street Journal, CoinDesk, and Cointelegraph, marks FalconX’s third major transaction in 2025 and underscores accelerating consolidation in the digital asset space amid a more favorable U.S. regulatory environment, such as the recent GENIUS Act.
Terms are undisclosed but involve a mix of cash and FalconX shares. The merger combines 21Shares’ expertise in ETP design and distribution with FalconX’s $2 trillion+ trading infrastructure, serving over 2,000 institutional clients.
The combined entity plans to launch new regulated crypto investment products, focusing on derivatives and structured funds to bridge traditional finance and crypto. This expands FalconX beyond market-making into ETF/ETP issuance, enhancing global reach across the US, Europe, and Asia-Pacific.
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Founded in 2018, the Zurich-based firm manages over $11 billion in assets across 55+ ETPs (e.g., Bitcoin, Ether, and token-specific products), primarily in Europe where such products predate U.S. approvals.
This follows a crypto M&A surge, including Coinbase’s $2.9B Deribit buy and Kraken’s $1.5B NinjaTrader deal, signaling mainstream institutional adoption.
FalconX CEO Raghu Yarlagadda emphasized the move as a “natural next step” for market efficiency, while 21Shares co-founder Hany Rashwan highlighted innovation in digital asset products.
Bealls Inc. Adds In-Store Crypto Payment Support
On October 20, 2025—coinciding with its 110th anniversary—U.S. retailer Bealls Inc. launched in-store cryptocurrency payments across all 660+ locations in 22 states, partnering with Flexa.
This makes Bealls the first national U.S. retailer to accept digital assets from any wallet across multiple blockchains, including majors (Bitcoin, Ethereum), stablecoins (USDC), and memecoins (Dogecoin, Shiba Inu).
Powered by Flexa Payments, the system integrates seamlessly with existing POS terminals, supporting 99+ cryptocurrencies from 300+ wallets. Transactions settle in sub-seconds with instant fiat/stablecoin payouts to merchants, minimizing volatility risks.
Applies to Bealls, Bealls Florida, and Home Centric brands for in-store purchases only online expansion TBD. No transaction fees for customers; security via blockchain confirmations.
With ~28% of U.S. adults 65M people holding crypto in early 2025, this taps growing demand for alternative payments. It follows similar moves by retailers like Overstock and Newegg, but stands out for scale and multi-chain support.
Bealls Chairman/CEO Matt Beall called it a step toward “reshaping global commerce,” while Flexa co-founder Trevor Filter praised Bealls’ legacy of innovation since 1915. This rollout highlights crypto’s shift from speculation to everyday utility, potentially boosting adoption as more chains integrate.
The merger strengthens FalconX’s ability to offer regulated crypto investment products like ETFs/ETPs, bridging traditional finance (TradFi) and crypto. This could attract institutional investors seeking exposure to crypto via familiar vehicles, especially in the U.S. where spot crypto ETFs have gained traction since 2024.
Combining FalconX’s trading infrastructure with 21Shares’ ETP expertise enables innovative offerings like crypto derivatives and structured funds. This could deepen liquidity and stabilize markets, appealing to risk-averse institutional players.
With 21Shares’ European and Asia-Pacific presence, FalconX gains a foothold in markets with mature ETP frameworks, potentially increasing its $2T+ trading volume and client base 2,000+ institutions.
The acquisition aligns with a favorable U.S. regulatory shift (e.g., GENIUS Act), easing crypto product approvals. This could accelerate launches of new ETFs, positioning FalconX-21Shares as a market leader in a less restrictive environment.
However, global regulatory fragmentation may complicate cross-border product standardization, requiring careful compliance navigation. The deal reflects a broader M&A wave signaling crypto’s maturation. Smaller players may struggle to compete, potentially leading to further consolidation or niche specialization.
Competitive pressure on rivals like Grayscale or BlackRock’s iShares could drive innovation but also margin compression in the ETF space. FalconX’s infrastructure could enhance price discovery and reduce volatility in ETPs by leveraging its market-making prowess.
However, integrating 21Shares’ $11B AUM into FalconX’s operations poses execution risks, such as operational scaling or client retention challenges. Overreliance on crypto market growth could expose the merged entity to downturns, especially if retail or institutional sentiment sours.
Implications of Bealls Inc. Adding In-Store Crypto Payments
Bealls’ move, as the first national U.S. retailer to accept crypto in-store across 660+ locations, normalizes digital assets for everyday purchases. With 28% of U.S. adults (~65M) holding crypto, this could drive spending, especially among younger, crypto-native consumers.
Supporting 99+ cryptocurrencies across multiple blockchains (via Flexa) sets a precedent, potentially pressuring competitors (e.g., Walmart, Target) to follow. This could accelerate crypto’s use as a payment rail, reducing reliance on traditional payment processors like Visa.
Flexa’s sub-second settlement and instant fiat/stablecoin payouts minimize volatility risks and transaction fees for Bealls, potentially lowering costs compared to card networks (2-3% fees). This could improve margins or allow competitive pricing.
Accepting memecoins (e.g., Dogecoin, Shiba Inu) alongside majors and stablecoins taps diverse crypto communities, potentially boosting foot traffic and brand loyalty among tech-savvy shoppers. Seamless POS integration via Flexa demonstrates blockchain’s practical utility, encouraging other retailers to adopt similar systems.
However, scaling to high transaction volumes across 660 stores tests blockchain network reliability (e.g., Bitcoin, Ethereum). Supporting multiple blockchains enhances accessibility but introduces complexity in wallet compatibility and user education, which could slow adoption if not user-friendly.
Bealls’ move reflects confidence in crypto’s staying power, potentially influencing investor sentiment and attracting more retail-focused blockchain development. Limited crypto wallet adoption and user unfamiliarity could hinder uptake, especially for in-store purchases requiring quick transactions.
Both developments reflect crypto’s shift from speculative asset to institutional and consumer utility, driven by infrastructure (FalconX-21Shares) and real-world adoption (Bealls). This could amplify market confidence and investment.
These moves signal crypto’s deepening integration into finance and commerce, but their success hinges on execution, regulatory clarity, and sustained market enthusiasm.
