Arkham Intelligence, a leading blockchain analytics company, is reportedly preparing to launch a cryptocurrency derivatives exchange as early as next month. The platform, according to a Bloomberg report, will focus on retail traders and aims to rival existing players like Binance. Arkham is reportedly in the process of securing a license to operate the exchange in the Dominican Republic.
Expanding Crypto Derivatives Market
The launch comes as the crypto derivatives market continues to experience rapid growth, with trading volume surpassing $3 trillion in September 2024—up from $1.5 trillion in the same period last year, according to a CCData report. The surge is largely fueled by an influx of retail investors and the introduction of various new derivatives products.
Established platforms such as the Chicago Mercantile Exchange (CME) have contributed to this growth. On Sept. 29, CME launched its Bitcoin Friday Futures (BFF), which it described as the “most successful crypto futures launch ever.” The BFF contracts, sized at one-fiftieth of a Bitcoin, recorded over 31,498 contracts traded on the first day, setting a new record for crypto futures trading volumes on the platform.
Other exchanges are also expanding their offerings. Crypto.com’s North American derivatives exchange, Nadex, recently listed derivative contracts tied to popular memecoins such as Pepe (PEPE), Floki Inu (FLOKI), Dogelon Mars (ELON), and BONK.
Arkham’s Blockchain Analytics and ARKM Token Surge
Arkham Intelligence is best known for its tools that allow users to track blockchain transactions and identify the entities associated with specific crypto wallet addresses. The company has raised $12 million from investors, including Sam Altman, the founder of OpenAI.
Following the news of Arkham’s plans to launch a derivatives exchange, the firm’s native token, ARKM, saw a price increase of more than 16%, according to CoinGecko.
Future Outlook for Crypto Derivatives
As the crypto derivatives market expands, new products and platforms continue to drive adoption. Options tied to Bitcoin ETFs are expected to be available in the U.S. by early 2025, according to Bloomberg Intelligence analyst James Seyffart. Arkham’s entry into the derivatives space could further intensify competition among existing exchanges and boost the availability of crypto derivatives for retail traders.
