Skew, which is a data provider for the crypto industry, recently announced that it had managed to net $2 Million in Funding from investors. The company is based in London and it successfully managed to convince some of the top venture capital firms to invest in it.
The Funding Round Details
FirstMinute Capital, a firm based in London, led the funding round. Participants in the project included some major venture capital firms such as Kima Ventures, Seedcamp, and QCP Capital. Despite this, details of the firm’s valuation have not been released.
During the announcement of the funding round, Skew also unveiled SkewAnalytics. This platform offers real-time data on the crypto derivatives industry, which is still quite young. The platform has over 100 charts on the crypto derivatives market. Skew’s main target is institutional clients that want to take a dive into crypto world. It will allow investors to visualize data as well as the creation of dashboards. The company has only 10 employees but it plans to expand soon.
Skew CEO said that they would focus on institutions, which will rely on this type of data, especially since crypto is still foreign to many. He added that various firms have already shown a lot of interest in the project. With the data, they have the ability to formulate back testing strategies to facilitate market strategies. With cryptocurrencies experiencing higher rates of volatility, many investors should find value in back testing to get a better understanding of market trends.
The Co-founders of Skew have both been involved in the financial market for a while, specifically in the derivatives market. They were both working at JP Morgan before they decided to create this project. The tools that they have come up with are institutional-grade tools, which can compete with the finest tools in the industry. The tools work well and many experts are eagerly waiting to see how they develop in the crypto derivatives world.
Crypto Derivatives
Crypto derivatives began to get serious attention in 2018, after the huge market correction from the 2017 Bull Run, which saw BTC hit highs of almost $20,000. Since then, various institutions have shown a serious interest in them.
Currently, swaps worth billions of dollars are traded daily at offshore platforms. For instance, CME Group is going to launch options trading in 2020. Another financial institution that has launched into the crypto derivatives market is the Intercontinental Exchange (IE). This is big news since this is the company behind the NYSE. It could potentially help to introduce more mainstream traders into the crypto world.
IE announced they had launched Bakkt, which has already been live for about a week now. On the platform, futures contracts will be settled using real BTC instead of cash. Some believe this could be a defining moment for the crypto industry. While this market is still fragmented, Skew has managed to contract various licensing agreement with some exchanges. Skew’s data explains that Bitcoin options have grown more than six times since Q4 2018. Bitcoin options are now a $34.8 billion dollar industry.
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