- March 15, 2024
- Posted by: [email protected]
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Point72 Ventures, the early-stage venture fund backed by prominent investor Steve Cohen, has taken the helm in a groundbreaking $10 million Series A funding round for D2X, a Netherlands-based cryptocurrency derivatives exchange. The investment marks a significant milestone for D2X as it secures its position as the first entity in the European Union (EU) to obtain a Markets in Financial Instruments Directive (MiFID) multilateral trading facility (MTF) license for crypto derivatives trading.
With this licensure, D2X enters a prestigious league of trading venues under the EU’s regulatory umbrella, ensuring adherence to stringent financial regulations set forth by MiFID II. This license enables D2X to offer a regulated platform for trading cash-settled crypto futures and options, providing institutional and retail investors with a trusted and compliant avenue for participating in the burgeoning cryptocurrency derivatives market.
The approval from the Dutch Authority for Financial Markets (AFM) further solidifies D2X’s credibility and positions it as a pioneer in the European crypto landscape. Scheduled for launch in the second quarter of 2024, D2X aims to set new standards by becoming the first exchange in Europe to list regulated crypto derivatives trading products seven days a week. This move is expected to attract a diverse array of market participants, including institutional investors, traders, and cryptocurrency enthusiasts seeking exposure to derivatives instruments in a regulated environment.
Adam Carson, a partner at Point72 Ventures, expressed enthusiasm for supporting D2X’s ambitious mission to revolutionize the crypto derivatives market. He lauded D2X’s dedication to establishing a regulated trading venue and its innovative approach, emphasizing the potential for transformative changes within the industry. Carson’s endorsement underscores Point72 Ventures’ commitment to backing innovative ventures within the digital asset space, despite the inherent volatility and regulatory uncertainties.
The investment from Point72 Ventures comes at a pivotal moment in the cryptocurrency market, characterized by heightened interest in and adoption of digital assets. As traditional financial institutions and investors increasingly recognize the value proposition of cryptocurrencies, ventures like D2X are poised to play a pivotal role in shaping the future of finance.
Furthermore, the rise in venture capital investment in crypto startups, as evidenced by the 2.5% increase to $1.9 billion in Q4 2023, according to PitchBook data, reflects a growing confidence and optimism in the long-term prospects of the cryptocurrency market. With regulatory clarity and institutional support, the cryptocurrency derivatives market is poised for exponential growth, ushering in a new era of financial innovation and opportunity.
