diff --git a/flake.lock b/flake.lock
index 32fe3f8892e..7cc74f6c2ef 100644
--- a/flake.lock
+++ b/flake.lock
@@ -421,11 +421,11 @@
     "hackage": {
       "flake": false,
       "locked": {
-        "lastModified": 1647306913,
-        "narHash": "sha256-RlnNBE/6wEkfACaAgp6CX8fleDKSYJmBcR5hVeJnA/s=",
+        "lastModified": 1647479749,
+        "narHash": "sha256-HB7JFXFFby54TeRSRO/Ycie30SeyKvWMz6ZfanwNbaQ=",
         "owner": "input-output-hk",
         "repo": "hackage.nix",
-        "rev": "591cdc67210f9b645face190e5cb689eacef4571",
+        "rev": "a4301eb140f5e65c5a43564f3fb699e3a16faba0",
         "type": "github"
       },
       "original": {
@@ -457,11 +457,11 @@
         "stackage": "stackage"
       },
       "locked": {
-        "lastModified": 1647315229,
-        "narHash": "sha256-GRS3fA7jnPY6c+p7xssXthsGG1nG7M+u22DMz9jDZQ4=",
+        "lastModified": 1647479878,
+        "narHash": "sha256-T7J2vdIHll1LAz22XvMS7cfYQXY8/kKuGeGb9DuJiWM=",
         "owner": "input-output-hk",
         "repo": "haskell.nix",
-        "rev": "eb49a3b7213470e36570f4aa1ed7a64e6d6cf160",
+        "rev": "f3f2c08051d64ed540448604009b72bd1f41ad12",
         "type": "github"
       },
       "original": {
@@ -779,11 +779,11 @@
     "stackage": {
       "flake": false,
       "locked": {
-        "lastModified": 1647307016,
-        "narHash": "sha256-5aaOk8EYVifi9nSdqR60ZyshgXYCiLrYrKRtPtM5iAQ=",
+        "lastModified": 1647393450,
+        "narHash": "sha256-vmLmc3fWWBq5VkAfAdDUtvmz8P/PU62Brr34voV+V6I=",
         "owner": "input-output-hk",
         "repo": "stackage.nix",
-        "rev": "66c6141c830c277ad919fb2a6180ee461ca0238b",
+        "rev": "56f045b4f40d0e22a37196bcb443dc50031e0c05",
         "type": "github"
       },
       "original": {
diff --git a/lib/shelley/cardano-wallet.cabal b/lib/shelley/cardano-wallet.cabal
index 92c9d36b2c9..65a7611de3f 100644
--- a/lib/shelley/cardano-wallet.cabal
+++ b/lib/shelley/cardano-wallet.cabal
@@ -220,6 +220,8 @@ test-suite unit
     , bech32
     , bech32-th
     , bytestring
+    , blockfrost-api
+    , blockfrost-client
     , cardano-addresses
     , cardano-api
     , cardano-crypto
@@ -273,6 +275,7 @@ test-suite unit
       Cardano.Wallet.Shelley.CompatibilitySpec
       Cardano.Wallet.Shelley.Compatibility.LedgerSpec
       Cardano.Wallet.Shelley.LaunchSpec
+      Cardano.Wallet.Shelley.Launch.BlockfrostSpec
       Cardano.Wallet.Shelley.NetworkSpec
       Cardano.Wallet.Shelley.TransactionSpec
       Spec
diff --git a/lib/shelley/exe/cardano-wallet.hs b/lib/shelley/exe/cardano-wallet.hs
index 4e89b391964..d39e7ef9d0f 100644
--- a/lib/shelley/exe/cardano-wallet.hs
+++ b/lib/shelley/exe/cardano-wallet.hs
@@ -63,8 +63,6 @@ import Cardano.CLI
     , tokenMetadataSourceOption
     , withLogging
     )
-import Cardano.Launcher.Node
-    ( CardanoNodeConn )
 import Cardano.Startup
     ( ShutdownHandlerLog
     , installSignalHandlers
@@ -102,9 +100,8 @@ import Cardano.Wallet.Shelley.BlockchainSource
 import Cardano.Wallet.Shelley.Launch
     ( Mode (Light, Normal)
     , NetworkConfiguration (..)
-    , modeFlag
+    , modeOption
     , networkConfigurationOption
-    , nodeSocketOption
     , parseGenesisData
     )
 import Cardano.Wallet.Version
@@ -185,7 +182,6 @@ data ServeArgs = ServeArgs
     , _mode :: Mode
     , _listen :: Listen
     , _tlsConfig :: Maybe TlsConfiguration
-    , _nodeSocket :: CardanoNodeConn
     , _networkConfiguration :: NetworkConfiguration
     , _database :: Maybe FilePath
     , _syncTolerance :: SyncTolerance
@@ -203,10 +199,9 @@ cmdServe = command "serve" $ info (helper <*> helper' <*> cmd) $
 
     cmd = fmap exec $ ServeArgs
         <$> hostPreferenceOption
-        <*> modeFlag
+        <*> modeOption
         <*> listenOption
         <*> optional tlsOption
-        <*> nodeSocketOption
         <*> networkConfigurationOption
         <*> optional databaseOption
         <*> syncToleranceOption
@@ -221,7 +216,6 @@ cmdServe = command "serve" $ info (helper <*> helper' <*> cmd) $
       mode
       listen
       tlsConfig
-      conn
       networkConfig
       databaseDir
       sTolerance
@@ -242,12 +236,10 @@ cmdServe = command "serve" $ info (helper <*> helper' <*> cmd) $
                 setupDirectory (logInfo tr . MsgSetupDatabases)
 
             blockchainSource <- case mode of
-                Normal ->
+                Normal conn ->
                     pure $ NodeSource conn vData
-                Light (Just token) ->
+                Light token ->
                     BlockfrostSource <$> Blockfrost.readToken token
-                Light Nothing ->
-                    exitWith $ ExitFailure 34
 
             exitWith =<< serveWallet
                 blockchainSource
diff --git a/lib/shelley/src/Cardano/Wallet/Shelley/Launch.hs b/lib/shelley/src/Cardano/Wallet/Shelley/Launch.hs
index 31549e37c95..4bc86f5b013 100644
--- a/lib/shelley/src/Cardano/Wallet/Shelley/Launch.hs
+++ b/lib/shelley/src/Cardano/Wallet/Shelley/Launch.hs
@@ -35,7 +35,7 @@ module Cardano.Wallet.Shelley.Launch
 
     -- * Light Mode
     , Mode (..)
-    , modeFlag
+    , modeOption
     ) where
 
 import Prelude
@@ -79,17 +79,7 @@ import Data.Text.Class
 import GHC.TypeLits
     ( KnownNat, Nat, SomeNat (..), someNatVal )
 import Options.Applicative
-    ( Parser
-    , eitherReader
-    , flag
-    , flag'
-    , help
-    , long
-    , metavar
-    , option
-    , optional
-    , (<|>)
-    )
+    ( Parser, eitherReader, flag', help, long, metavar, option, (<|>) )
 import Ouroboros.Network.Magic
     ( NetworkMagic (..) )
 import Ouroboros.Network.NodeToClient
@@ -400,12 +390,15 @@ instance HasSeverityAnnotation TempDirLog where
                                     Mode
 -------------------------------------------------------------------------------}
 
-data Mode = Normal | Light (Maybe Blockfrost.TokenFile)
+data Mode = Normal CardanoNodeConn | Light Blockfrost.TokenFile
   deriving (Show)
 
-modeFlag :: Parser Mode
-modeFlag = do
-    light <- flag False True $
-        mconcat [ long "light", help "Enable light mode" ]
-    creds <- optional Blockfrost.tokenFileOption
-    pure $ if light then Light creds else Normal
+modeOption :: Parser Mode
+modeOption = normalMode <|> lightMode
+  where
+    normalMode =
+        Normal <$> nodeSocketOption
+    lightMode =
+        flag' () (long "light" <> help "Enable light mode") *>
+        fmap Light Blockfrost.tokenFileOption
+
diff --git a/lib/shelley/src/Cardano/Wallet/Shelley/Launch/Blockfrost.hs b/lib/shelley/src/Cardano/Wallet/Shelley/Launch/Blockfrost.hs
index c7738cfcb9f..94caaabea19 100644
--- a/lib/shelley/src/Cardano/Wallet/Shelley/Launch/Blockfrost.hs
+++ b/lib/shelley/src/Cardano/Wallet/Shelley/Launch/Blockfrost.hs
@@ -14,14 +14,14 @@ import Blockfrost.Client.Core
 import Blockfrost.Client.Types
     ( Project (..) )
 import Options.Applicative
-    ( Parser, auto, help, long, metavar, option )
+    ( Parser, help, long, metavar, option, str )
 
 newtype TokenFile = TokenFile FilePath
-    deriving newtype (Eq, Show, Read)
+    deriving newtype (Eq, Show)
 
 -- | --blockfrost-token-file FILE
 tokenFileOption :: Parser TokenFile
-tokenFileOption = option auto $ mconcat
+tokenFileOption = option (TokenFile <$> str) $ mconcat
     [ long "blockfrost-token-file"
     , metavar "FILE"
     , help $ mconcat
diff --git a/lib/shelley/test/unit/Cardano/Wallet/Shelley/Launch/BlockfrostSpec.hs b/lib/shelley/test/unit/Cardano/Wallet/Shelley/Launch/BlockfrostSpec.hs
new file mode 100644
index 00000000000..eaec8ef7b30
--- /dev/null
+++ b/lib/shelley/test/unit/Cardano/Wallet/Shelley/Launch/BlockfrostSpec.hs
@@ -0,0 +1,65 @@
+module Cardano.Wallet.Shelley.Launch.BlockfrostSpec
+    ( spec
+    ) where
+
+import Prelude
+
+import qualified Blockfrost.Client.Types as Blockfrost
+import qualified Data.Text as T
+
+import Blockfrost.Env
+    ( Env (Testnet) )
+import Cardano.Wallet.Shelley.Launch
+    ( Mode (Light, Normal), modeOption )
+import Cardano.Wallet.Shelley.Launch.Blockfrost
+    ( readToken )
+import Options.Applicative
+    ( ParserFailure (execFailure)
+    , ParserResult (CompletionInvoked, Failure, Success)
+    , defaultPrefs
+    , execParserPure
+    , fullDesc
+    , info
+    )
+import Test.Hspec
+    ( Spec, describe, expectationFailure, it, shouldBe, shouldReturn )
+import UnliftIO
+    ( withSystemTempFile )
+import UnliftIO.IO
+    ( hClose )
+
+spec :: Spec
+spec = describe "Blockfrost CLI options" $ do
+    it "modeOption --node-socket" $ do
+        let parserInfo = info modeOption fullDesc
+            args = ["--node-socket", "/tmp/file"]
+        case execParserPure defaultPrefs parserInfo args of
+            Failure pf -> expectationFailure $ show pf
+            CompletionInvoked cr -> expectationFailure $ show cr
+            Success (Light _) -> expectationFailure "Normal mode expected"
+            Success (Normal _conn) -> pure ()
+
+    it "modeOption --light" $ withSystemTempFile "blockfrost.token" $ \f h -> do
+        let parserInfo = info modeOption fullDesc
+            args = ["--light", "--blockfrost-token-file", f]
+            net = "testnet"
+            projectId = "jlUej4vcMt3nKPRAiNpLUEeKBIEPqgH2"
+        case execParserPure defaultPrefs parserInfo args of
+            Failure pf -> expectationFailure $ show pf
+            CompletionInvoked cr -> expectationFailure $ show cr
+            Success (Normal _conn) -> expectationFailure "Light mode expected"
+            Success (Light tf) -> do
+                hClose h *> writeFile f (net <> projectId)
+                readToken tf `shouldReturn`
+                    Blockfrost.Project Testnet (T.pack projectId)
+
+    it "modeOption requires --light flag" $ do
+        let parserInfo = info modeOption fullDesc
+            args = ["--blockfrost-token-file", "/tmp/file"]
+        case execParserPure defaultPrefs parserInfo args of
+            Failure pf | (help, _code, _int) <- execFailure pf "" ->
+                show help `shouldBe`
+                    "Missing: --light\n\n\
+                    \Usage:  (--node-socket FILE | \
+                    \--light --blockfrost-token-file FILE)"
+            result -> expectationFailure $ show result
diff --git a/nix/materialized/stack-nix/cardano-wallet.nix b/nix/materialized/stack-nix/cardano-wallet.nix
index 3e158c80f69..0c80c83090f 100644
--- a/nix/materialized/stack-nix/cardano-wallet.nix
+++ b/nix/materialized/stack-nix/cardano-wallet.nix
@@ -195,6 +195,8 @@
             (hsPkgs."bech32" or (errorHandler.buildDepError "bech32"))
             (hsPkgs."bech32-th" or (errorHandler.buildDepError "bech32-th"))
             (hsPkgs."bytestring" or (errorHandler.buildDepError "bytestring"))
+            (hsPkgs."blockfrost-api" or (errorHandler.buildDepError "blockfrost-api"))
+            (hsPkgs."blockfrost-client" or (errorHandler.buildDepError "blockfrost-client"))
             (hsPkgs."cardano-addresses" or (errorHandler.buildDepError "cardano-addresses"))
             (hsPkgs."cardano-api" or (errorHandler.buildDepError "cardano-api"))
             (hsPkgs."cardano-crypto" or (errorHandler.buildDepError "cardano-crypto"))
@@ -244,6 +246,7 @@
             "Cardano/Wallet/Shelley/CompatibilitySpec"
             "Cardano/Wallet/Shelley/Compatibility/LedgerSpec"
             "Cardano/Wallet/Shelley/LaunchSpec"
+            "Cardano/Wallet/Shelley/Launch/BlockfrostSpec"
             "Cardano/Wallet/Shelley/NetworkSpec"
             "Cardano/Wallet/Shelley/TransactionSpec"
             "Spec"