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FalconX plans to buy Arbelos Markets, which operates in the field of crypto derivatives, and this is seen as a sign of confidence after a record quarter.
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CEO Raghu Yarlagadda predicts to expect a “wave of consolidation” in 2025 as corporate interests and regulations reshape the market.
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Arbelos’ focus on derivatives aligns with recent crypto trends, allowing FalconX to benefit from the growth of this space.
FalconX is preparing to deepen its market presence with the acquisition of Arbelos Markets. The move targets the crypto derivatives industry, which is growing in a consolidating environment.
FalconX will take over Arbelos
FalconX, a long-time provider of digital asset trading and brokerage services, intends to acquire Arbelos Markets. The brightest period for the company came in 2021, and it quintupled its value in five months by securing significant financing during that period. Since then, FalconX has seen significant pullbacks, with 18% of total assets locked up due to a failed exchange and facing new CFTC fines this year.
But according to Bloomberg, the recovery is underway. In October 2024, FalconX had a record quarter and the company began evaluating acquisition options. Co-founder and CEO Raghu Yarlagadda offers a positive outlook for 2025.
“The cost of doing business in the crypto world will rise as more institutional players enter the market and regulations tighten. This will trigger a wave of consolidation in 2025. We are currently actively exploring potential acquisitions and evaluating relevant sectors and key players,” Yarlagadda said.
After a two-month search, FalconX appears to have identified Arbelos Markets as its next acquisition target. According to unnamed sources, it is said that the deal will be completed within a few days, and FalconX will pay in cash and company shares. Arbelos is very sensitive to critical market trends.
In the past few months, derivatives markets have become prominent in the crypto market. Some important players from on-chain analysis companies such as Arkham Intelligence have made significant strides in this field. FalconX’s acquisition of Arbelos could also allow it to capitalize on this trend. However, time will tell if crypto mergers and acquisitions will increase in 2025.
Over the past few years, FalconX has seen significant growth due to the increasing demand for digital asset brokerage services.
In April 2022, FalconX became the first cryptocurrency exchange registered with the CFTC, strengthening its regulatory position and providing users with secure access to over-the-counter crypto derivatives markets.
The company has attracted significant attention with multiple funding rounds, in which it received a total investment of $430 million from investors such as GIC, B Capital and Tiger Global Management.
Future implications on the crypto market
The acquisition of Arbelos Markets could set a precedent in the crypto industry and indicate a larger trend towards consolidation. As more regulatory oversight is imposed on digital assets, companies are likely to turn to mergers and acquisitions to strengthen their positions and achieve compliance, analysts say.
Additionally, as institutional investors increasingly participate in the market, demand for advanced trading tools such as crypto derivatives is expected to increase. Arbelos’ expertise in this area provides a strategic fit for FalconX.
Conclusion
In short, FalconX’s plan to buy Arbelos Markets highlights an important strategic move to capture the evolving cryptocurrency derivatives landscape. By recognizing the consolidation trend and maintaining a positive outlook, FalconX aims to position the future in its favor. This bold move could pave the way for more acquisition opportunities driven by corporate interests and regulatory changes.
