Robinhood Considers Crypto Futures in US, Europe

Robinhood is looking to offer cryptocurrency futures in the US and Europe in the coming months.

The move follows the exchange's $200 million acquisition of Bitstamp, which is expected to be completed next year. Robinhood will leverage the Luxembourg-based crypto exchange’s licenses to offer perpetual futures for Bitcoin and other tokens in Europe. CME-based futures for Bitcoin and Ether are also being considered in the US.

However, a spokesperson stated, "We have no imminent plans to launch these offerings," adding that the discussions are ongoing.

Robinhood has gained a large user base with its commission-free stock trades and user-friendly interface. However, the company has also faced criticism for its lack of customer service and its role in the GameStop stock market frenzy of early 2021.

Acquiring Bitstamp marks a major step for Robinhood in its quest to become a one-stop shop for all things investing, including cryptocurrencies.

“The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long-standing global exchange has shown resilience through market cycles," said Johann Kerbrat, general manager of Robinhood Crypto. 

"By seamlessly coupling customer experience with safety across geographies, the Bitstamp team has established one of the strongest reputations across retail and institutional crypto investors."

Spot trading volumes in May on centralized exchanges totalled $1.57 trillion but monthly derivatives saw a volume of $3.69 trillion. Demand for such products has increased following the approval of Bitcoin ETFs in the US back in January. Coinbase already offers such derivatives.

In its Q1 2024 earnings report, Robinhood stated that almost 40% of its transaction-based revenue of $329 million came from crypto trading. This increase in volume led to a 232% increase in crypto-related revenue to $126 million, as the platform posted a net income of $157 million for the period.

Robinhood also launched crypto staking in Europe in May. Customers in the region can stake their Solana holdings directly through the Robinhood app, which will enable them to earn rewards. New customers can earn a 10% bonus, paid in USDC, on their net buys in their first 30 days on the platform too.

The platform will also launch local language versions of its crypto app, beginning in Italy, Poland, and Lithuania.