Goldman Sachs has agreed to acquire exchange-traded fund manager NEOS Investments in a deal that could reach $2.25 billion.

 

 

Announcing the acquisition plan, Goldman Sachs said in a press release that the move is aimed at expanding its offering of sophisticated, derivative-based ETFs to clients and investors.

 

“As investor demand for active ETFs grows, NEOS’ disciplined investment approach is highly complementary to our capabilities across buffer, managed outcome and income strategies. Together, we will give investors a diverse toolkit for different market environments,” said David Solomon, Chairman and CEO of Goldman Sachs.

 

With derivatives income ETFs being one of the fastest-growing categories in the ETF market, with approximately $180 billion in assets under management, financial research firm Morningstar projects that a combination of Goldman Sachs and NEOS could create the eighth-largest ETF manager in the world.

 

The acquisition is expected to be completed in the first quarter of 2027. Upon completion, NEOS co-founders Troy Cates and Garrett Paolella will join Goldman Sachs as managing partners. The full NEOS team, including its investment and client service teams, will also be absorbed into Goldman Sachs Asset Management.

 

About Goldman Sachs

 

Headquartered in New York, Goldman Sachs is one of the world’s leading investment firms, offering a range of services, including investment banking, securities trading, and asset management, to corporations, governments, and high-net-worth individuals.

 

The firm currently holds significant positions in Bitcoin and Ethereum ETFs and most recently filed for its Bitcoin-linked ETF in April, marking a shift from its previous skepticism toward the digital asset space to a more active engagement with the industry.

 

 

Bitwise Asset Management has laid off 14% of its global staff, leaving the firm with a workforce of 155, down from about 180 employees before the layoffs.

 

While the firm did not explicitly state the reason for the layoffs, the move comes at a time when companies continue to navigate a severe downturn in the crypto market.

 

Responding to news outlets, Bitwise Chief Executive Officer Hunter Horsley said the adjustment equips the firm for the ongoing growth it has experienced this year. He added that he expects the growth to continue as crypto becomes further integrated into the global economy.

 

Bitwise’s recent layoffs come at a time when several other crypto-focused companies have also had to trim their workforces, with some citing the ongoing crypto market downturn as the reason, while others have reduced their staff as part of a strategic pivot toward artificial intelligence.

 

According to a report tracking layoffs in the crypto industry, more than 5,000 jobs have reportedly been lost in layoffs across several crypto companies, notable among them Robinhood, Crypto.com, Dune, Algorand, and Block.

 

About Bitwise 

 

Bitwise is a leading crypto-focused asset management firm that provides investors, financial advisers, and institutions with exposure to digital assets through a diverse range of investment products, including exchange-traded funds (ETFs), index funds, and private funds.

 

Despite the widespread downturn in the crypto market this year, Bitwise has achieved a number of notable milestones, including the acquisition of Chorus One, an institutional staking provider, for $2.2 billion, as well as the launch of the spot Hyperliquid ETF and Avalanche ETP.

 

FalconX, a leading institutional digital-assets brokerage and trading platform, has agreed to acquire 21Shares, a prominent issuer of crypto exchange-traded products (ETPs) and ETFs. The deal was announced in late October 2025, though the specific terms have not been publicly disclosed.

This acquisition brings together FalconX’s strength in execution, trading infrastructure and institutional client base with 21Shares’ deep experience in product development, distribution and listed crypto investment vehicles.

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Who Are the Players?

FalconX was founded in 2018 and has grown into a major player in crypto asset brokerage, serving over 2,000 institutional clients and facilitating more than $2 trillion in trading volume. The company also has a valuation of about $8 billion as of its 2022 funding round.

21Shares, headquartered in Switzerland (with operations in New York and London), was founded in 2018 and is known for building one of the world’s largest suites of crypto ETPs. As of September 2025, it managed assets in excess of $11 billion across 50-plus listed products. The firm had also begun filing for U.S. crypto index ETFs and liquidated certain futures-based ETFs earlier in the year.

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Why This Acquisition Matters

Expansion into Regulated Investment Products

The deal enables FalconX to move beyond its core services—market making, liquidity supply and institutional trading—into the realm of regulated investment vehicles. With 21Shares’ expertise in ETP/ETF structuring and listings, FalconX can offer crypto exposure via familiar formats to institutional and retail investors alike.

Convergence of Traditional Finance and Crypto

This transaction highlights the deepening overlap between traditional financial markets and digital asset markets. Asset managers, custodians and broker-dealers increasingly view crypto investment products as mainstream opportunities, not just niche plays. The acquisition positions FalconX and 21Shares to capitalize on that shift.

Synergies in Product Development and Distribution

FalconX brings its institutional trading infrastructure, global client base, and risk/credit management framework to the table. Meanwhile, 21Shares contributes product architecture, index methodology, listing track record and global distribution channels. Combined, this creates a platform capable of launching structured crypto products at scale.

Strategic Timing

The acquisition comes at a time of regulatory clarity and product expansion in the crypto investment space. The U.S. Securities and Exchange Commission and other global regulators have recently approved or streamlined exchange-traded crypto product filings. By securing 21Shares now, FalconX gains immediate access to a market moving fast toward regulated crypto exposure.

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Implications and What to Watch

For Investors

Investors may benefit from a broader array of crypto investment vehicles—especially those who prefer regulated formats over direct asset ownership. This could mean increased product choice, improved liquidity and potentially deeper institutional participation in crypto markets.

For the Crypto Industry

The deal may spur further consolidation in digital assets infrastructure. Firms with strong product capabilities, regulated distribution and institutional access will increasingly dominate. Smaller players may struggle unless they carve out niche specialties.

Regulatory and Geographical Considerations

As FalconX and 21Shares expand into various jurisdictions, regulatory compliance becomes critical. How well the enlarged entity navigates regulatory regimes in the U.S., Europe and Asia-Pacific will influence its long-term success.

Product Pipeline

What comes next? Potential areas include U.S. crypto index ETFs, altcoin-focused ETFs, structured products (synthetics, derivatives), and possibly tokenized asset offerings. The product pipeline will likely be watched closely by investors and market watchers.

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Final Thoughts

FalconX’s acquisition of 21Shares represents a bold strategic move in the evolution of crypto investment infrastructure. By combining trading and brokerage operations with product development and listing expertise, the two firms together are poised to accelerate the shift of digital assets into regulated investment frameworks.

For investors, this means more familiar and accessible ways to participate in crypto markets. For the industry, it’s a clear sign that consolidation and institutionalization are accelerating. The ultimate success will hinge on execution—product launches, regulatory navigations and global distribution.

 

If FalconX and 21Shares deliver on their promise, the acquisition could mark a pivotal moment in crypto’s transition from speculative to institutional-grade investment.