Key Insights
- Robinhood plans to expand into crypto futures using its pending Bitstamp acquisition.
- The company aims to offer CME-based Bitcoin and Ether futures in the U.S. and perpetual futures in Europe.
- This move comes despite regulatory challenges, with Robinhood’s crypto trading increasing by 224% in Q1 2024.
NEW YORK (MarketsXplora) – Robinhood Markets Inc is reportedly planning to leverage its pending acquisition of cryptocurrency exchange Bitstamp to expand its presence in the futures market, particularly with crypto contracts, according to sources familiar with the matter.
The popular trading platform is looking to launch CME-based Bitcoin and Ether futures in the United States, while utilizing Bitstamp’s licenses to offer perpetual futures for Bitcoin and other tokens in Europe, Bloomberg reported on Tuesday.
This move comes as the cryptocurrency derivatives market continues to outpace spot trading. According to data from crypto researcher CCData, spot trading volumes on centralized exchanges reached $1.57 trillion in May, while monthly derivatives volume soared to $3.69 trillion.
When approached for comment, a Robinhood spokesperson told Bloomberg, “We have no imminent plans to launch these offerings.” MarketsXplora was unable to reach Robinhood for immediate comment.
The expansion plans come despite Robinhood’s crypto unit receiving a Wells notice from the U.S. Securities and Exchange Commission (SEC) in early May. However, the company remains committed to growing its crypto enterprise, buoyed by a 224% increase in crypto trading during the first quarter of 2024.
Robinhood’s acquisition of Bitstamp, valued at $200 million, is expected to close in the first half of 2025. Bitstamp, the oldest operating crypto exchange, boasts over 50 licenses and registrations globally. This deal would mark Robinhood’s entry into serving institutional crypto clients.
In March, Robinhood acquired Marex FCM, which holds the necessary license to offer futures in the U.S., further positioning the company for its expansion into crypto derivatives.
Read also! Robinhood Acquires AI-Powered Investment Platform Pluto Capital
Robinhood CEO Vlad Tenev has been vocal about the regulatory challenges facing the crypto industry. In a May interview with CNBC, Tenev expressed disappointment with the SEC’s approach, stating,
“The SEC has the ability to change the rules to allow for brokers to accommodate crypto assets, and they don’t seem intent on doing that. And rather, they’re proceeding with regulation by enforcement.”
Tenev emphasized the growing importance of crypto assets and Robinhood’s commitment to providing access to them for American investors, adding,
“We do believe that crypto assets are becoming more and more important, and it would not be acceptable to us to not have Americans have access to them.”