Steve Cohen’s Point72 Ventures Leads $10M Funding Round in Crypto Exchange D2X

Point72 Ventures, a venture capital fund funded by Steve Cohen, is spearheading a $10 million Series A funding round for cryptocurrency exchange D2X.

Steve Cohen’s Point72 Ventures leads a $10 million funding round in the cryptocurrency exchange D2X.

By Tanzeel Akhtar – March 14, 2024 06:39 EDT

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.

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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.

Q&A

Q: What is the significance of D2X obtaining the MiFID MTF license?

A: D2X’s achievement of being the first entity in the European Union to obtain the MiFID MTF license for crypto derivatives is a significant milestone. It allows D2X to operate as a regulated trading venue for cash-settled crypto futures and options, giving retail investors an alternative platform to trade financial securities.

Q: What makes Point72 Ventures interested in supporting D2X?

A: Point72 Ventures sees great potential in D2X’s mission to revolutionize the crypto derivatives market. D2X’s dedication to providing a regulated trading venue for institutions, combined with their innovative approach, has caught the attention of Point72 Ventures. They believe that D2X has the ability to make transformative changes in the industry.

Q: What are crypto derivatives, and why are they gaining increasing interest?

A: Crypto derivatives are complex, tradeable financial instruments that are typically used by advanced traders. They provide traders with the ability to speculate on the price movements of cryptocurrencies, hedge their positions, and manage risk. As the crypto market continues to grow, the demand for crypto derivatives has also increased, attracting the attention of both traders and investors.

Q: How has the VC funding landscape for crypto startups changed recently?

A: The crypto industry has experienced its fair share of scandals and setbacks in recent years, but the current bull market is triggering positive sentiment. Venture capital investors are now more optimistic and actively seeking new projects to invest in. In Q4 2023, venture capital investment in crypto startups saw a 2.5% increase to $1.9 billion, marking the first rise since Q2 2022. This suggests a renewed enthusiasm for the crypto ecosystem.

Future Outlook: Analysis and Recommendations

The current funding round led by Point72 Ventures highlights the growing interest and confidence in the crypto derivatives market. D2X’s focus on providing a regulated trading venue for institutions is in line with the increasing demand for transparency and compliance in the crypto industry. As more regulatory frameworks are established, it is expected that the market for regulated crypto derivatives will continue to expand.

Investors looking to capitalize on this trend may consider diversifying their portfolios to include investments in regulated crypto exchanges and derivative platforms. By investing in companies like D2X, investors can participate in the growing crypto derivatives market while enjoying the benefits of regulatory oversight and investor protections.

As with any investment, it is crucial to conduct thorough research and due diligence. Understanding the specific market dynamics, regulatory landscape, and competitive landscape will help investors make informed decisions. Additionally, it is important to assess the potential risks and evaluate the financial health and stability of the companies being considered for investment.

In conclusion, the funding round for D2X and the overall positive sentiment in the crypto industry serve as indicators of a growing market for regulated crypto derivatives. Investors who position themselves strategically in this emerging sector may stand to benefit from the potential for transformative changes and financial opportunities.

References

1. Tanzeel Akhtar on Crypto Briefing
2. D2X Reaches “Pivotal Milestone” in Crypto Derivatives Market
3. MiFID Multilateral Trading Facility License
4. PitchBook Data: Venture Capital Investment in Crypto Startups
5. Point72 Ventures: Investing in Digital Assets

📺 Video: Understanding Crypto Derivatives

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