Robinhood Markets Inc. HOOD is contemplating the launch of cryptocurrency futures in both the U.S. and Europe in the coming months.
What Happened: According to sources familiar with the matter, the move is planned to follow the completion of its $200 million acquisition of Bitstamp Ltd., a Luxembourg-based crypto exchange, expected next year, Bloomberg reported.
Leveraging Bitstamp’s licenses, Robinhood aims to offer perpetual futures for Bitcoin and other cryptocurrencies in Europe. In the US, the platform is exploring the introduction of CME-based futures for Bitcoin BTC/USD and Ethereum ETH/USD.
However, a Robinhood spokesperson indicated that there are “no imminent plans to launch these offerings,” noting that discussions are ongoing and final decisions have not been made.
Crypto derivatives represent a significantly larger market compared to the spot market globally.
In May, centralized exchanges saw spot trading volumes of $1.57 trillion, while derivatives trading volumes soared to $3.69 trillion, as reported by crypto research firm CCData.
Also Read: German Government Sells Another $17M In Bitcoin
Why It Matters: The demand for futures has grown, particularly following the approval of US Bitcoin exchange-traded funds earlier this year.
Despite a Wells notice from the Securities and Exchange Commission, suggesting a potential enforcement action against Robinhood, the company has been actively expanding its cryptocurrency strategy.
In June, Robinhood announced its agreement to acquire Bitstamp, with the deal anticipated to close in the first half of 2025.
Earlier, in March, the company acquired Marex FCM, securing the necessary license to offer futures in the US.
Currently, Coinbase Global Inc., COIN the largest U.S. crypto exchange, already provides derivatives trading.
Robinhood’s potential entry into the crypto futures market highlights its commitment to broadening its financial offerings despite regulatory challenges.
What’s Next: These developments and their implications for the cryptocurrency market will be key topics at Benzinga’s Future of Digital Assets event on Nov. 19.
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