Crypto M&A hit $10 billion in Q3, over 30× last year’s level

Crypto dealmaking exploded past $10 billion in the third quarter of 2025, a record-breaking surge that’s more than 30 times higher than what the market saw a year ago, according to a report from Architect Partners.

At the center of this quarter’s activity is FalconX’s acquisition of 21shares, the Swiss company that pioneered exchange-traded crypto products across Europe.

As Cryptopolitan previously reported, 21 shares selling itself to FalconX (a prime broker backed by Tiger Global and Singapore’s GIC) means it’s giving up independence to expand its reach as crypto races toward full financial integration.

FalconX was valued at $8 billion in its 2022 funding round, and started growing its footprint in trading and derivatives through its recent purchase of Arbelos Markets.

Trump’s deregulation opens the floodgates for deals

For years, crypto mergers were nearly nonexistent. After the 2022 crypto winter, firms operated under constant pressure from regulators who viewed the sector as radioactive. That changed after Trump’s return to the White House ten months ago.

Under his leadership, the SEC has gone from confrontation to cooperation, giving firms a path to scale up legally. Russell Barlow, chief executive officer of 21shares, said the policy change completely altered the company’s timeline. “The regulatory environment finally allowed this to happen faster,” Russell said. “What we thought we could do in five years we can now compress in two to three years.”

For most of the last decade, 21shares thrived in Europe while the U.S. banned spot crypto ETFs. That ended in early 2024 under President Joe Biden, when the ban was lifted, forcing firms like 21shares to compete with American giants that had deeper pockets and broader networks.

BlackRock and Fidelity quickly dominated with their low-cost Bitcoin and Ether ETFs, drawing in more than $173 billion in assets combined. BlackRock’s IBIT Bitcoin ETF alone now manages $87 billion, while 21shares oversees $11 billion across its 50-plus products. The acquisition by FalconX gives it a chance to survive in a market ruled by scale.

Barlow confirmed that 21shares will keep its 100-person team and continue to operate independently. The company plans to launch 18 new U.S. funds this year and expand into the Middle East and Asia, with FalconX providing infrastructure and capital.

Both companies also plan to experiment with tokenized bonds and equities, using blockchain technology to settle trades faster and cut costs for institutions.

This year’s deal roster includes Coinbase’s $2.9 billion takeover of Deribit, Ripple’s $2 billion acquisitions of Hidden Road and GTreasury, and CoreWeave’s $9 billion offer for Core Scientific, one of the biggest Bitcoin mining operators.

Karl-Martin Ahrend, co-founder of the investment bank Areta, said consolidation is pushing crypto firms to control more of their value chains. “Market makers, custodians, and infrastructure players are moving closer to the end investor as ETFs and regulation open new channels for institutional capital,” he said.

Some crypto giants are also raising funds to keep up with the pace of consolidation. Circle, which issues the second-largest stablecoin, brought in $1.1 billion in June, while Gemini raised $425 million in September. The rush is driven by fear that Goldman Sachs, Citigroup, Stripe, and Revolut could soon enter the market, armed with larger balance sheets and distribution networks.

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