TLDR
- Backpack Exchange, created by past FTX and Alameda personnel, has secured FTX EU for an amount of $32.7 million.
- The acquisition promises a dedication to refund the finances owed to FTX EU's clientele.
- Backpack aims to make its debut in the first quarter of 2025, positioning itself as Europe's sole regulated crypto derivatives provider.
- Nasdaq ISE is reaching out to the SEC seeking approval to multiply the position and exercise limits on Bitcoin ETF options by tenfold.
- This change is proposed owing to the increasing trading volume and liquidity of IBIT, with the limits remaining conservative in comparison to other ETFs.
A number of ex-employees from FTX and Alameda have established Backpack Exchange. This new venture has recently acquired FTX's European operations for a reported $32.7 million.
Endorsed by both the Cyprus Securities and Exchange Commission and the bankruptcy court, the acquisition involves Backpack's commitment to distributing nearly €53 million ($55 million) to the affected customers of FTX EU. Returning these funds is Backpack's top objective.
FTX EU, previously known as Digital Assets AG, was acquired by FTX in 2021 and, following FTX's downfall, has been temporarily halted by Cyprus regulators, although it continues to handle transactions and reimburse clients.
Backpack has secured ownership of FTX EU and its estimable MiFID II License.
— Backpack 🎒 (@Backpack) January 7, 2025
Our foremost ambition is to restore all European customer funds for the FTX estate, followed by the release of a full array of trading products including spot, margin, and futures.
The return of crypto perpetuals trading to Europe! pic.twitter.com/ExxYFufZHj
Through this acquisition, Backpack gains control of the valuable MiFID II license from FTX EU, empowering it to offer regulated crypto derivatives, such as perpetual futures, across the European Union.
Armani Ferrante, who spearheads the company and is noted for his work on the Solana blockchain, spoke of their plans to begin European operations in early 2025. Their mission is to establish Backpack as the primary regulated provider for crypto derivatives, particularly perpetual futures, within Europe.
Ferrante highlighted that although other players like Coinbase and Bitstamp possess derivatives licenses in Europe, they have yet to launch perpetual futures trading. Backpack could therefore enjoy a first-mover’s edge.
Backpack Exchange originally kicked off in 2022 with a non-custodial crypto wallet called Backpack Wallet, eventually growing into a comprehensive crypto trading platform.
In a separate development within the crypto derivatives space, Nasdaq's ISE options exchange has put forward a proposal to the SEC to significantly increase the position and exercise limits for options on the iShares Bitcoin Trust ETF (IBIT) from 25,000 to 250,000 contracts.
ISE underscored the suggestion by referencing the surging trading volume and liquidity of IBIT, which stands as the world's largest Bitcoin ETF with $46.8 billion in assets. Despite the proposed limit rise, IBIT options would still account for only 2.89% of outstanding shares, maintaining a more conservative stance compared to other ETFs like SPDR Gold Shares (GLD) and iShares Silver Trust (SLV).
The crypto community is keenly observing both Backpack's expansion into Europe and Nasdaq ISE's impending proposal concerning the upsurge of Bitcoin ETF options trading in the U.S.
