(Reject) Sparrow Crypto Options Exchange Raises $3.5 Million In Series A Funding Led by BitMEX Parent

Sparrow exchange, the leading crypto options trading platform, has announced that it has raised a total of $3.5 million in series A funding. The Singapore-based Sparrow exchange is planning to use the financing to accelerate its platform development. The funding was led by the HDR Group, the operator and owner of BitMEX, and assisted by FinLab EOS VC, Du Capital, and Signum Capital.

Seed to Accelerate Product Development

The CEO of Sparrow, Kenneth Yeo, stated his team is delighted that the funding obtained strong support despite the difficult economic climate caused by the coronavirus pandemic. Kenneth said that the strong interests from investors demonstrated Sparrow’s view that crypto options would be the next high-growth market.

The managing director of FinLab EOS VC Fund, Stefan Schuetze, said that Sparrow exchange leverages blockchain EOSIO for its layer-two protocols that avoid disseminating every transaction to the entire network by exchanging authenticated transactions off-chain. The layer-two protocols help to complete off-transactions within sub-seconds rather than hours or minutes while allowing blockchain to scale, reducing fees, and retaining asset security.

FinLab EOS VC Fund is a German-based fintech incubator that concentrates on investing in startups that use EOSIO protocol.

Sparrow exchange offers Bitcoin and Ethereum options that are settled by smart contracts. The exchange was founded in 2019 and since then has experienced tremendous growth with more than $150 million in options trading volume. With this latest funding round, Sparrow exchange is well set to bring even more important trading products to the market. The company aims to introduce more innovative products to the crypto derivatives market. The exchange seeks to take advantage of untapped opportunities in the increasingly growing digital asset options space.

Thriving Options Ecosystem

Significant growth in the digital asset options market indicates rapidly increasing interest by institutional investors in trading regulated crypto derivatives products. This explains the reason why several crypto exchanges are increasingly launching derivatives products. The market for crypto options has been heating up since the start of the year. Several crypto exchanges are launching their own options tied to Bitcoin.