Robinhood Said to Consider Offering Crypto Futures in US, Europe

07/02/2024 22:33

(Bloomberg) -- Robinhood Markets Inc. is considering offering cryptocurrency futures in the US and Europe in the coming months, according to people familiar with the commission-free investing and trading platform’s plan.Most Read from BloombergDemocrats Weigh Mid-July Vote to Formally Tap Biden as NomineePowerful Hurricane Beryl Aims at Jamaica After Grenada StrikeTrump Immunity Ruling Means Any Trial Before Election Unlikely‘Upflation’ Is the New Retail Trend Driving Up Prices for US ConsumersT

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Once its $200 million acquisition of Bitstamp Ltd. closes next year, Robinhood is hoping to use the crypto exchange’s licenses to offer perpetual futures for Bitcoin and other tokens in Europe, according to the people, who asked for anonymity because the plans haven’t been made public. It also wants to launch CME-based futures in the US for Bitcoin and Ether, the people said.

“We have no imminent plans to launch these offerings,” according to a Robinhood spokesperson. Conversations are still ongoing, the people said, and final plans could still change.

Crypto derivatives are a bigger market than the so-called spot market worldwide. In May, spot trading volumes on centralized exchanges were $1.58 trillion, while monthly derivatives volume reached $3.69 trillion, according to data from crypto researcher CCData. Demand for futures has increased since the approval of US Bitcoin exchange-trade funds at the start of the year.

Robinhood has been broadening its crypto strategy and offerings despite receiving a Wells notice from the US Securities and Exchange Commission warning that it made an initial determination to recommend an enforcement action against the Menlo Park, California-based company. Despite that warning, in June Robinhood agreed to acquire Bitstamp, with the deal expected to close in the first half of 2025. Earlier this year, it acquired a futures broker license from Marex, which has the necessary license to offer futures in the US, according to the people.

Coinbase Global Inc., the biggest US crypto exchange, already offers derivatives.

Shares of Robinhood fell 1.8% to $22.39 as of 10:45 am in New York. The stock has risen 76% this year.

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