Point72 Ventures, an early-stage venture fund backed by Steve Cohen, is leading a $10 million Series A funding round in D2X, a Netherlands-based crypto derivatives exchange.
In an announcement, D2X said the investment comes as it reached a “pivotal milestone” by becoming 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.
MTFs operate under the EU’s MiFID II which stipulates that financial instruments traded via an MTF must be exchanged on a ‘non-discretionary basis’. MTFs provide retail investors with an alternative platform to trade financial securities.
D2X said it has been granted the license by the Dutch Authority for Financial Markets (AFM) The license authorizes D2X to operate a regulated trading venue for cash-settled crypto futures and options.
The Netherlands-based exchange said it will launch in the second quarter of 2024 and aims to be the first exchange in Europe to list regulated crypto derivatives seven days a week.
Plans to ‘Revolutionize’ Crypto Derivatives Market
“Point72 Ventures is thrilled to support D2X on its mission to revolutionize the crypto derivatives market,” said Adam Carson, partner at Point72 Ventures, in a press release.
“Their dedication to providing a regulated trading venue for institutions, coupled with their innovative approach, has the potential to make transformative changes in the industry. We’re excited to be part of this journey,” adds Carson.
Over the years, the crypto derivative markets have seen increasing interest. Crypto derivatives are complex, tradeable financial instruments typically used by advanced traders.
Point72 Ventures has been actively investing in startups in the digital asset space despite the volatility in the sector. In 2021, Point72 Ventures became the lead investor in Messari.
Bull Market Triggers Increased VC Funding
As the market enters a crypto bull run, this in turn is triggering positive sentiment with several venture capital investors firms eyeing up new projects to invest in.
The last few years have been followed by scandals and the FTX collapse in the crypto space, but it seems the community is now seeing some light at the end of the tunnel.
Venture capital investment in crypto startups climbed 2.5% to $1.9 billion in Q4 2023, marking the first such rise since Q2 2022, according to recent PitchBook data.
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