Yahoo Finance Robinhood (HOOD) Plans to Offer Crypto Futures in Europe, U.S.
Robinhood Markets, Inc. HOOD is contemplating offering cryptocurrency futures in the United States and Europe in the near future. The news was first reported by Bloomberg, citing people with knowledge of the matter, who asked not to be identified as the plans are not yet public.
Per these people, once HOOD completes its previously announced acquisition of Bitstamp Ltd. for $200 million next year, the trading platform will likely use the crypto exchange’s licenses to offer perpetual futures for Bitcoin and other tokens in Europe.
Also, HOOD is planning to launch CME-based futures in the United States for Bitcoin and Ether.
The plans are subject to change as the conversation is still ongoing. A Robinhood spokesperson said, “We have no imminent plans to launch these offerings.”
Robinhood has been making several efforts to expand its crypto exposure. In November 2023, the trading platform announced that it would start crypto trading in the European Union and brokerage operations in the U.K.
Currently, HOOD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, since the approval of U.S. Bitcoin exchange-traded funds (“ETFs”) at the beginning of 2024, the demand for futures has risen.
On Jan 10, 2024, the Securities and Exchange Commission (“SEC”) approved rule changes to allow the launch of spot Bitcoin ETFs in the United States. This was a turning point for the crypto markets, which had been under regulatory scrutiny for some time.
For years, the SEC warned of the risks of the largely unregulated crypto markets, turning various crypto-based investment applications away and levying fines on alleged crypto scams.
However, the SEC’s decision to allow trading of spot Bitcoin ETFs marked a shift in how cryptocurrencies were viewed and traded by investors.
This February, Franklin Resources, Inc. BEN became the eighth firm within the crypto industry to file for a spot Ethereum ETF.
In November 2023, BlackRock BLK filed for a spot Ethereum ETF, named iShares Ethereum Trust, with the SEC, following which, the price of Ethereum surged to its highest level during the year before pulling back afterward.
In June 2023, BLK became the first asset manager to file for a spot Bitcoin ETF, paving the way for a wave of filings by other asset managers.
Notably, including BEN, all the firms that were competing to introduce spot Ethereum ETFs rolled out spot Bitcoin products in January.
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