News

Robinhood Eyes Crypto Futures Expansion in US and Europe

  • Robinhood plans to offer crypto futures in the US and Europe, leveraging Bitstamp’s licenses post-acquisition in 2025.
  • The global crypto derivatives market, surpassing spot trading volumes, highlights the rising demand for futures products.
  • Despite regulatory hurdles, Robinhood’s acquisitions of Bitstamp and Marex FCM position it for growth in crypto futures.

Robinhood plans to offer crypto futures in the US and Europe soon, according to sources cited by Bloomberg. This move comes as the company aims to leverage licenses from its anticipated $200 million acquisition of Bitstamp Ltd. next year.

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The Luxembourg-based crypto exchange’s licenses will enable Robinhood to provide perpetual futures for Bitcoin and other tokens in Europe. In the US, the company is considering launching CME-based futures for Bitcoin and Ether.

Regulatory Obstacles and Prudent Purchases

Notably, Robinhood has no plans to launch these products at this time.  But negotiations are still going on, and no decisions have been made in stone. A Robinhood representative emphasized the project’s experimental nature while confirming to Bloomberg that there are no immediate plans.

The global crypto derivatives market has surpassed spot trading in volume, highlighting the growing demand for futures. CDC data reports that in May, spot trading volumes on centralized exchanges reached $1.57 trillion. 

Meanwhile, monthly derivatives volume hit $3.69 trillion. Demand for futures has increased since US Bitcoin exchange-traded funds received regulatory approval at the start of the year.

Robinhood’s aggressive crypto push comes despite the regulatory doubts. Back in June, the company agreed to acquire Bitstamp; the deal is expected to close in 1H25. Besides, in March, Robinhood purchased Marex FCM, securing the necessary license to offer futures in the US.

Capitalizing on the Booming Crypto Derivatives Market

Moreover, Robinhood’s strategic moves aim to capitalize on the booming crypto derivatives market. By acquiring Bitstamp and Marex FCM, Robinhood strengthens its position in the crypto space. This expansion is a calculated response to the rising demand for crypto futures.

The company’s push into crypto futures is part of a broader strategy. Robinhood continues to explore new opportunities, leveraging its acquisitions to enhance its offerings. Consequently, the company’s efforts could significantly impact the crypto futures market in the US and Europe.

However, the regulatory environment remains a crucial factor. Robinhood must navigate the complexities of regulatory compliance while expanding its crypto futures offerings. The ongoing discussions indicate a careful approach, ensuring compliance and strategic alignment.

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Godfrey Mwirigi

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.

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