Bitnomial, a bitcoin derivatives exchange with access to the lucrative, and exclusive, U.S. institutional market, has raised $11.6 million in a Series B led by Electric Capital, according to a source familiar with the matter.

With additional participation from Jump Capital, the latest raise will help Bitnomial expand its operations, the source said. The Chicago-based market for physically settled bitcoin futures and options trading already offers both services on margin.

  • The Commodity Futures Trading Commission-regulated derivatives market disclosed its equity sale in an Oct. 5 filing with the U.S. Securities and Exchange Commission.
  • The raise confirms August reporting by The Block that indicated Bitnomial CEO Luke Hoersten sought to raise $10 million to expand Bitnomial’s market infrastructure, employee base and product offering.
  • Bitnomial surpassed that benchmark: investors joined the round for a total raise of $11,644,051.
  • Hoersten declined to comment, telling CoinDesk: "Bitnomial does not comment on capital raising or commercial strategy."  
  • Electric Capital declined to comment. A representative from Jump Capital did not immediately respond to requests for comment.
  • The disclosure follows U.S. regulators’ multi-pronged crackdown on crypto derivatives market BitMEX last week.
  • It's worth noting that Binomial’s raise notched its first sale in the weeks leading up to the BitMEX allegations.
  • Also of note: the two companies service vastly different client bases. Bitnomial services institutional investors, whereas BitMEX plays to retail traders. 
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