Bitget, a Seychelles-based crypto trading firm that offers both derivatives and spot trading, announced Tuesday that it has raised a $10 million strategic funding round from Dragonfly, a leading crypto-focused venture capital firm.
Crypto Trading Platform Bitget Gets $10 Million Funding Round From Dragonfly
Bitget has raised $10 million Series B in 2020. It is led by China’s largest global growth fund, Anlan Capital, which values at $1 billion. In an interview with Fortune, Bitget CEO Gracie Cheng declined to be specific, saying that the most recent funding values Bitget in the several-billion-dollar range. Bitget was based in Singapore before registering in the Seychelles in December 2022 after a dispute with the country’s regulator, the Monetary Authority of Singapore, was reported in late 2021.
After FTX collapse in November, companies are scrambling to fill the gap. Financial instruments derive their value from the performance of the underlying asset. For example, future price of Bitcoin, spot trading is based on the current price and distribution of the asset.
Founded in 2018, Bitget has climbed the ranks of derivatives cryptocurrency exchanges and is currently ranked 5th on CoinGecko by open interest and trading volume, behind industry leaders such as Binance, Bybit and OKX. Derivatives trading has become even more popular during bear markets as users seek more diverse strategies, according to Chen. While the market is generally aimed at professional traders, Chen said Bitget’s clients are a mix of institutional and individual users.
Derivatives trading in cryptocurrencies remains heavily restricted in the United States, with Binance and its founder Changpeng “CZ” Zhao facing lawsuits from the Commodities Futures Trading Commission alleging unauthorized activity. Currently, Bitget is not available in the US.
Chen said Bitget is also expanding into spot trading. This is one of its main motivations for seeking funding from Dragonfly, which has a broad portfolio of cryptocurrency companies. Вitget is driving growth by offering a feature called “copy trading” that allows retail users to copy the strategies of professional traders. What Bitget describes as its flagship product, “one-click copy trading” users mimic precise orders made by “experts”.
According to Chen, Вitget has over 8 million users from over 100 countries. With over 100,000 traders and 3 million followers, Вitget’s Copy Trading feature includes both derivative-focused and spot trading options. Вitget is also expanding with other crypto ecosystem products, including the $30 million investment announced last week in BitKeep, a decentralized wallet similar to Ethereum’s popular MetaMask product.
Chen pointed to Вitget’s rapid expansion as an exception to the current bear market in cryptocurrencies. Since joining last year, the company’s workforce has grown from about 200 to 1,300. She attributed part of that success to her masterful World Cup partnership with Argentina superstar Lionel Messi, who led his team to the victory.
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