US-Regulated Bitcoin Derivatives Market Bitnomial Raises $11.6M in Electric Capital-led Series B

The disclosure comes shortly after U.S regulators' crackdown on retail competitor BitMEX.

Oct 6, 2020 at 3:01 p.m. UTC
Updated Sep 14, 2021 at 10:05 a.m. UTC

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. 
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Crypto Valley Venture Capital Launches African Blockchain Early-Stage Fund

The venture capital investor published a report which found funding for African blockchain startups far outpaced investment in other venture funding.

The venture capital investor published a report which found funding for African blockchain startups far outpaced investment in other venture funding.

CoinDesk - Unknown
2
CoinDesk - Unknown
First Mover Asia: Terra's Difficult Post-Collapse Path: VCs Backing Away, Regulators Jumping on Stablecoins

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

Some investors see salvageable pieces in the rubble while others are bemoaning their involvement and want to forget the protocol ever existed; bitcoin edges up in weekend trading.

CoinDesk - Unknown
3
CoinDesk - Unknown
China Can’t Seem to Stop Bitcoin Mining

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

CoinDesk - Unknown
4
CoinDesk - Unknown
Could Local Digital Currencies Improve Communities?

That's the argument of the president of the RadicalxChange Foundation.

That's the argument of the president of the RadicalxChange Foundation.

CoinDesk - Unknown