FalconX, a digital asset prime broker, has acquired trading firm Arbelos Markets, marking a significant step in the evolution of the crypto derivatives market in 2024. This move comes in light of substantial growth in institutional trading driven by positive regulatory developments and the rise of ETFs and derivatives. Experts see this acquisition as a natural progression spurred by increasing demand and a fragmented market with no dominant players. The growth of crypto derivatives is expected to surpass that of spot markets, as these products generally offer higher margins. Historical acquisitions, such as Cboe’s purchase of ErisX, illustrate the trend toward consolidation in a maturing market. Increased regulatory clarity and acceptance of crypto as a portfolio diversifier are seen as pivotal factors for the current environment, prompting expectations of further M&A activity in this space.

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