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

Oct 6, 2020 at 15:01 UTCUpdated Oct 6, 2020 at 15:55 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."

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.

Bitnomial services institutional investors, whereas BitMEX plays to retail traders.