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Robinhood to Launch Crypto Futures in U.S. and Europe

Robinhood Markets Inc. (NASDAQ:HOOD) is considering offering cryptocurrency futures in both the United States and Europe. This potential expansion was first reported by Bloomberg, citing anonymous sources familiar with the matter, as the plans have not yet been made public.

Expanding Crypto Offerings

According to these sources, once Robinhood completes its $200 million acquisition of Bitstamp Ltd. next year, the trading platform plans to leverage Bitstamp’s licenses to offer perpetual futures for Bitcoin and other cryptocurrencies in Europe. Additionally, Robinhood is planning to introduce CME-based futures for Bitcoin and Ether in the United States. However, the plans are still under discussion and may change. A Robinhood spokesperson stated, “We have no imminent plans to launch these offerings.”

Robinhood has been actively expanding its cryptocurrency exposure. In November 2023, the company announced plans to start crypto trading in the European Union and brokerage operations in the U.K.

Regulatory and Market Developments

Currently, Robinhood holds a Zacks Rank #2. The complete list of today’s Zacks #1 Rank stocks can be found here. The approval of U.S. Bitcoin exchange-traded funds at the beginning of 2024 has significantly increased the demand for futures.

On January 10, 2024, the Securities and Exchange Commission approved rule changes allowing the launch of spot Bitcoin ETFs in the United States. This decision marked a significant shift in the regulatory landscape, which had previously been cautious about the largely unregulated crypto markets. The SEC’s approval of spot Bitcoin ETFs represented a turning point, encouraging more institutional investment in cryptocurrencies.

In February, Franklin Resources Inc. (NYSE:BEN) became the eighth firm to file for a spot Ethereum ETF. In November 2023, BlackRock Inc. (NYSE:BLK) filed for a spot Ethereum ETF named iShares Ethereum Trust, which led to a surge in Ethereum prices to their highest levels of the year. In June 2023, BlackRock became the first asset manager to file for a spot Bitcoin ETF, paving the way for other asset managers to follow suit.

Market Reactions and Future Prospects

Including Franklin Resources, all firms competing to introduce spot Ethereum ETFs had already rolled out spot Bitcoin products in January, indicating strong market interest and potential for growth in cryptocurrency investment products.

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