Robinhood plans to expand its cryptocurrency futures offering

Robinhood is reportedly considering expanding its cryptocurrency offering by leveraging its pending acquisition of Bitstamp to enter the futures market.

According to Bloomberg’s report, the company aims to introduce CME-based Bitcoin and Ether futures contracts in the United States, while using Bitstamp’s licenses to offer perpetual futures contracts for Bitcoin and other tokens in Europe.

However, this comes at a time when the crypto derivatives sector is growing rapidly. Recent data from cryptocurrency researcher CCData indicates that while spot trading volumes on centralized exchanges reached $1.57 trillion in May, derivatives volume jumped to $3.69 trillion.

Additionally, Robinhood’s interest in expanding its cryptocurrency services is evident from its recent performance, with cryptocurrency trading increasing by 224% in the first quarter of 2024.

Additionally, the $200 million Bitstamp purchase, which is expected to close by mid-2025, would also give Robinhood exposure to more than 50 global licenses and registrations and introduce it to institutional clients for cryptocurrencies.

This is not deterring Robinhood, however, despite regulatory hurdles, including an SEC notice regarding Wells in May of this year. The company’s CEO, Vlad Tenev, has stressed the growing importance of crypto assets and the need for U.S. investors to have access to them.

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