**BREAKING: Robinhood Eyes Launching Crypto Futures in US and Europe**
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**By Hassan Shittu**
**Last updated: July 2, 2024, 12:52 EDT | 2 min read**
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Robinhood Markets is reportedly considering offering cryptocurrency futures trading in both the US and Europe. This strategic move aims to diversify its services and capitalize on recent acquisitions to strengthen its foothold in the competitive crypto market.
### Robinhood’s Crypto Futures Vision
The cryptocurrency trading platform Robinhood is said to be planning to list crypto futures in the US and Europe. According to a report by Bloomberg, the platform aims to introduce futures trading “in the coming months.” This plan involves utilizing licenses obtained from its $200 million acquisition of the Bitstamp crypto exchange, which is expected to finalize next year.
By leveraging Bitstamp’s licenses, Robinhood could offer perpetual futures for Bitcoin and other digital assets. This strategic expansion into the futures market underscores Robinhood’s commitment to broadening its services and maintaining a competitive edge.
Anonymous sources have suggested the company is interested in launching CME-based futures for Bitcoin (BTC) and Ethereum (ETH). However, a Robinhood spokesperson stated, “We have no imminent plans to launch these offerings,” indicating that while discussions are ongoing, final decisions have not been made.
The potential listing of crypto futures comes amidst a notable rise in demand for crypto derivatives. Following the approval of spot Bitcoin ETFs in January, derivatives trading volumes surged to $3.69 trillion, significantly outpacing centralized spot trading volumes of $1.57 trillion. By entering the futures market, Robinhood aims to tap into this growing interest and offer its users more diverse trading options.
Currently, Robinhood Crypto is available in 50 US states, the Virgin Islands, and Puerto Rico. In July, the company expanded its trading services to include 15 assets across all US territories, such as Bitcoin, Ethereum, Dogecoin, and Avalanche.
Robinhood experienced a significant increase in crypto trading volumes in the first quarter, with a 224% rise to $36 billion. This growth boosted the company’s transaction-based revenue by 59% year-over-year to $329 million, with crypto-related revenue alone climbing by 232% to $126 million. As of March 31, Robinhood held $26.2 billion in users’ crypto assets, marking a 78% increase from the end of 2023.
The rising interest in cryptocurrencies contributed to Robinhood’s strong financial performance, surpassing expectations with $618 million in revenue and earnings of $0.18 per share, leading to a 7% increase in post-market trading of its shares.
### Regulatory Hurdles
Despite its success, Robinhood faces regulatory challenges in the crypto space. Earlier this year, the company received a Wells Notice from the SEC, signaling potential enforcement action over tokens traded on its platform.
Robinhood Markets announced plans to contest the allegations of securities violations brought by the US Securities and Exchange Commission (SEC). CEO Vlad Tenev criticized the SEC’s actions, describing them as part of a broader regulatory effort that stifles innovation and impacts American firms and investors.
The SEC’s investigation focuses on possible violations related to cryptocurrency listings, custody, and platform operations, which could lead to civil and administrative proceedings, including cease-and-desist orders and financial penalties.
In response to the SEC’s scrutiny, Robinhood Crypto previously halted support for specific tokens deemed securities, affecting US users’ access to altcoins like Cardano (ADA), Polygon (MATIC), and Solana (SOL).
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