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Robinhood reportedly considering offering cryptocurrency futures in the U.S. and Europe
(Bloomberg) — Robinhood Markets Inc. is considering offering cryptocurrency futures in the U.S. and Europe in the coming months, according to people familiar with the plan for the commission-free trading and investing platform.
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Once its $200 million acquisition of Bitstamp Ltd. closes next year, Robinhood hopes to use the crypto exchange’s licenses to offer perpetual futures for bitcoin and other tokens in Europe, according to the people who requested anonymity because the plans were not disclosed. It also wants to launch CME-based futures in the U.S. for bitcoin and ether, the people said.
“We have no imminent plans to launch these offerings,” according to a Robinhood spokesperson. Conversations are ongoing, the people said, and final plans could still change.
Crypto derivatives are a larger market than the so-called spot market worldwide. In May, spot trading volumes on centralized exchanges were $1.58 trillion, while monthly derivatives volumes reached $3.69 trillion, according to data from cryptocurrency researcher CCData. Demand for futures has increased since the approval of U.S. Bitcoin exchange funds earlier this year.
Robinhood has expanded its crypto strategy and offerings despite receiving a Wells Notice from the U.S. Securities and Exchange Commission that it had made an initial determination to recommend enforcement action against the Menlo Park, California-based company. Despite that notice, Robinhood agreed to acquire Bitstamp in June, with the deal expected to close in the first half of 2025. Earlier this year, it acquired a futures broker license from Marex, which is licensed to offer futures in the U.S., according to the people.
Coinbase Global Inc., the largest cryptocurrency exchange in the United States, already offers derivatives.
Robinhood shares fell 1.8% to $22.39 as of 10:45 a.m. in New York. The stock has risen 76% this year.
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