Blockchain analytics firm Arkham Intelligence reportedly plans to launch a cryptocurrency derivatives exchange as soon as next month, according to a Bloomberg report. 

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

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

Blockchain data firm Arkham to launch derivatives exchange: Report image 0

Arkham’s blockchain tracker. Source: Arkham

Related: Bitcoin ETF options expected by Q1 2025: Bloomberg analyst

The crypto derivatives market is exploding, largely driven by trading activity from retail investors. 

Crypto derivatives trading volume exceeded $3 trillion in September, up from approximately $1.5 trillion one year prior, according to a report by CCData. 

Adoption is being spurred by a proliferation of crypto derivatives products, including on established exchanges such as the Chicago Mercantile Exchange (CME). 

On Sept. 29, CME’s Bitcoin Friday Futures (BFF) debuted in what the derivatives exchange dubbed the “most successful crypto futures launch ever.”

The contracts contributed 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. 

On Oct. 8, Crypto.com’s North American derivatives exchange, Nadex, listed derivatives contracts tied to memecoins including Pepe ( PEPE ) 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 United States by the first quarter of 2025, according to James Seyffart, a Bloomberg Intelligence analyst .

Arkham is best known for offering a popular tool for tracking blockchain transactions and identifying the entities associated with various crypto wallet addresses.

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

Arkham’s token, ARKM, is up more than 16% after Bloomberg’s report, according to CoinGecko.

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