Arrow Markets Secures $4M in Series A to Forge New Paths in Crypto Options Trading

Arrow Markets, an options trading platform built on the Avalanche blockchain, successfully secured $4 million during its Series A funding, as reported in a dispatch to Bitcoin.com News. At its core, Arrow Markets leverages a Request-for-Execution (RFE) mechanism, designed to offer quotes for option contracts within Avalanche's C-chain. The mission of Arrow is to become the preferred platform for retail options traders by offering competitive pricing that stands as a formidable contender to centralized exchanges.

"Crypto options have historically struggled to gain widespread adoption due to capital inefficiency and illiquidity," Roy Learner, principal at Framework Ventures remarked. "Arrow's hybrid exchange aims to address these issues by enabling a fast, cheap trading experience while minimizing counterparty risk. Arrow's design will simplify the options trading experience, making it easy for retail and institutions alike to trade and settle any options strategy onchain."

Arrow's fundraising efforts coincide with a period where options trading volumes and open interest have hit all-time highs. This increase in the crypto derivatives market surged at the close of 2023, fueled by expectations for spot bitcoin exchange-traded funds. The uptick has also been propelled by a revival in the crypto market, unprecedented trading volumes, and increased involvement from institutional investors. For instance, in February 2024, Deribit, the leading crypto options exchange, witnessed its 24-hour trading volume reach an all-time high of $12.4 billion.