Robinhood’s Next Crypto Play: Launching Futures Contracts in the US and Europe
Robinhood, the popular trading platform, is planning to expand its cryptocurrency offerings by launching futures contracts in the US and Europe. This move is part of the company’s efforts to broaden its crypto business, which has been growing rapidly in recent months.
Trading platforms are expanding their crypto offerings
According to reports, Robinhood is planning to use its acquisition of UK-based crypto exchange Bitstamp to offer perpetual futures for Bitcoin and other tokens in Europe. The company hopes to leverage Bitstamp’s licenses to launch these products, which will allow traders to speculate on the price movements of cryptocurrencies without actually owning them.
A crypto derivatives contract is a tradable financial instrument whose value derives from an underlying cryptocurrency asset.
In the US, Robinhood intends to introduce CME-based futures for Bitcoin and Ether. However, the company has stated that there are no immediate plans to launch the offering, and discussions are ongoing, so final plans could change.
Bitcoin’s price has been surging in recent months
Robinhood has always been a proponent of cryptocurrency, and this move is seen as a natural extension of its existing crypto business. The company was one of the first platforms to allow Dogecoin trading on its app, and it launched a cryptocurrency wallet last year that gained popularity among investors.
If Robinhood begins offering crypto derivatives, it would directly compete with Coinbase, which is already involved in the crypto derivatives business. This move could potentially shake up the crypto market and provide more options for traders.
The crypto derivatives market is growing rapidly
In conclusion, Robinhood’s plans to launch futures contracts in the US and Europe are a significant development in the crypto market. As the company continues to expand its crypto offerings, it will be interesting to see how this move affects the market and its competitors.
