TLDR
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- Backpack Exchange, founded by former FTX/Alameda employees, acquired FTX EU for $32.7M
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- The acquisition includes a commitment to distribute funds owed to FTX EU customers
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- Backpack plans to launch in the first quarter of 2025 as the only regulated provider of crypto derivatives in Europe
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- Nasdaq ISE Seeks SEC Approval to 10x Increase Position/Exercise Limits on Bitcoin ETF Options
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- Suggested change due to growing IBIT trading volume/liquidity, still conservative compared to other ETFs
Former employees of the bankrupt exchange FTX and the trading company Alameda Research have founded a new company called Backpack Exchange. In a deal worth $32.7 million, Backpack has now acquired FTX’s European unit, FTX EU.
The acquisition, which has been approved by both the Cyprus Securities and Exchange Commission and the FTX bankruptcy court, includes a commitment by Backpack to distribute approximately €53 million ($55 million) in court-approved bankruptcy claims to affected FTX EU customers. Returning these customer funds is Backpack’s top priority.
FTX EU, formerly known as Digital Assets AG before it was acquired by FTX in 2021 for $323 million, has been under suspension by Cypriot regulators since FTX collapsed in late 2022. Although restricted from providing services, the entity has continued to process transactions and return client funds.
Backpack has acquired FTX EU and its MiFID II license.
Our first priority is to return all customer EURO funds on behalf of the FTX property, followed by rolling out a full range of spot, margin and futures trading products.
Cryptoperps trading is coming back to Europe 🇪🇺 pic.twitter.com/ExxYFufZHj
— Backpack 🎒 (@Backpack) January 7, 2025
With the acquisition, Backpack gains control over FTX EU’s coveted MiFID II license. This will enable Backpack to offer regulated crypto derivatives trading, including perpetual futures contracts, to clients across the EU.
Backpack CEO Armani Ferrante, a prominent Solana blockchain developer, said the company plans to launch its European operations in the first quarter of 2025. Their goal is to establish Backpack as the only regulated provider of perpetual futures and other crypto derivative products in Europe.
Ferrante noted that while competitors such as Coinbase and Bitstamp have obtained derivatives licenses in the EU, they have yet to launch perpetual futures trading in the region. This could potentially give Backpack a first-mover advantage.
Backpack Exchange originally launched in 2022 with a non-custodial crypto wallet called Backpack Wallet. The company has since expanded into a full crypto trading platform.
In other crypto derivatives news, Nasdaq’s ISE options exchange recently filed a proposal with the US Securities and Exchange Commission to increase position and exercise limits on options on the iShares Bitcoin Trust ETF (IBIT) from 25,000 to 250,000 contracts.
ISE justified the proposed tenfold increase by pointing to the growing trading volume and liquidity of IBIT, currently the world’s largest Bitcoin ETF with $46.8 billion in assets. The exchange noted that even with the higher limit, IBIT options would represent only 2.89% of outstanding shares, a more conservative ratio than similar ETFs such as SPDR Gold Shares (GLD) at 8.17% and iShares Silver Trust (SLV) to 4.8%.
The crypto industry is closely watching both Backpack’s European expansion plans and the fate of Nasdaq ISE’s proposal to increase trading of Bitcoin ETF options in the US
