Blockchain Analytics Firm Arkham Intelligence Plans to Launch Cryptocurrency Derivatives Exchange

The exchange will target retail traders and compete with existing platforms such as Binance, Bloomberg said, citing a person familiar with the matter.

Blockchain analytics firm Arkham Intelligence is planning to launch a cryptocurrency derivatives exchange as early as next month, according to a Bloomberg report.

The exchange will reportedly cater to retail traders and compete with existing platforms like Binance, the person said.

Arkham is already in the process of obtaining a license in the Dominican Republic, where it plans to operate the exchange, according to the report.

The crypto derivatives market has seen explosive growth in recent times, largely driven by trading activity from retail investors.

Crypto derivatives trading volume surpassed $3 trillion in September, up from about $1.5 trillion a year earlier, according to a report by CCData.

The adoption is being spurred by a proliferation of crypto derivatives products, including at established exchanges like the Chicago Mercantile Exchange (CME).

On Sept. 29, CME's Bitcoin Friday Futures (BFF) debut in what the derivatives exchange called "the most successful crypto futures launch ever."

The contracts helped contribute to a record first-day trading volume among crypto futures offerings, with over 31,498 contracts traded across two contract weeks, according to CME.

The BFFs are sized at only one-50th of a Bitcoin (BTC). It is a similar offering as Coinbase's “nano” Bitcoin futures, which are sold in increments of one-100th of 1 BTC.

Meanwhile, on Oct. 8, Crypto.com's North American derivatives exchange, Nadex, listed derivatives contracts tied to memecoins including Pepe (PEPEUSD) and Floki Inu (FLOKI).

It also listed derivative products tied to Dogelon Mars (ELON) and BONK, according to Oct. 7 Commodity Futures Trading Commission (CFTC) filings.

Options on BTC exchange-traded funds (ETFs) are likely to launch in the U.S. by the first quarter of 2025, according to James Seyffart, a Bloomberg Intelligence analyst.

Arkham is best known for offering a popular tool to help track blockchain transactions and identify the entities associated with various crypto wallet addresses.

The firm has raised $12 million from investors including Sam Altman, the founder of ChatGPT maker OpenAI.

Arkham's token, ARKM, is up over 16% following Bloomberg's report, according to CoinGecko.