Bitmain, Fidelity, Nasdaq Ventures Invest in Crypto Exchange ErisX

The upcoming trading platform, which is still waiting for CFTC approval, has received support from ConsenSys, and Monex Group as well.

ErisX, the forthcoming crypto market of Chicago-based derivatives platform Eris Exchange LLC TD, raised $27.5 million in a Series B funding round, Reuters reported on Tuesday. The investment was led by Chinese digital coin miner Bitmain, crypto company ConsenSys, US financial services giant Fidelity, the venture arm of New York stock exchange Nasdaq, and Coincheck’s owner Monex Group, ErisX said in a statement.

The project did not disclose the exact amount of money that each investor had given the company. Earlier this week, Nasdaq confirmed rumors that it would launch Bitcoin (BTC) futures in the first half of 2019.

ErisX will also launch its trading platform and clearing service next year. The exchange will support spot trading in BTC, Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), as well as virtual coin futures contracts. The firm plans for its crypto derivatives to be physically delivered, which means that when contracts expire, investors should receive the underlying coins, not cash. CME Group and CBOE use the opposite practice for their Bitcoin futures.

ErisX filed documents for derivatives clearing organization (DCO) with US Commodity Futures Trading Commission (CFTC) in 2017, and it expects approval in the first quarter of 2019. The new trading venue plans to launch spot contracts in Q2 2019, and start its futures offering after June. ErisX will get clearing services by its clearinghouse, which needs a separate CFTC permit.

ErisX has already received support from several investors, including leading global retail brokerages TD Ameritrade and DRW Venture Capital, the owner of virtual coin trader Cumberland. Digital Currency Group, NEX Opportunities, Pantera Capital, CTC Investments Group, and one of the investors into Elon Musk's SpaceX, Valor Equity Partners, also supported ErisX

Bakkt, the upcoming exchange of NYSE owner ICE, will be one of ErisX’ main competitors.

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