The crypto exchange’s revenue soared more than 1,000% from $89m to $1.02b in 2021. Its profitability, like many start-ups, depends on how you measure it. Operating income was $272m, up from $14m a year earlier. FTX saw net income of $388m last year, up from just $17m a year earlier.
FTX has certainly ramped up its retail expansion efforts. But the documents show that it’s still mainly a venue for more sophisticated traders using derivatives – either futures, or options. About two-thirds of revenue came from futures trading fees, while roughly 16% came from so-called spot trading. Futures and derivatives trades tend to be more lucrative for exchanges.