- Robinhood plans to offer cryptocurrency futures in US and Europe.
- $200 million acquisition of Bitstamp to aid expansion.
- Nearly 40% of Robinhood’s Q1 2024 revenue came from crypto trading.
Robinhood is preparing to introduce cryptocurrency futures trading in the US and Europe, following its $200 million acquisition of Bitstamp. This move aims to utilize Bitstamp’s licenses to offer perpetual futures for Bitcoin and other tokens in Europe, while CME-based futures for Bitcoin and Ether are being considered in the US.
The acquisition of Bitstamp signifies a major step for Robinhood in becoming a comprehensive investment platform. Bitstamp’s strong reputation and robust customer experience are expected to enhance Robinhood’s crypto business.
Robinhood Expands Crypto Horizons with Bitstamp Acquisition
Crypto derivatives trading has seen a surge in demand, with centralized exchanges reporting $3.69 trillion in monthly derivatives volumes in May, compared to $1.57 trillion in spot trading volumes. This trend follows the approval of Bitcoin ETFs in the US earlier this year, positioning Robinhood to tap into this growing market.
Robinhood’s Q1 2024 earnings highlight the significance of its crypto trading business, which contributed nearly 40% of its $329 million transaction-based revenue. Additionally, the company introduced crypto staking in Europe, allowing customers to earn rewards on their Solana holdings. This move, coupled with a 10% bonus for new customers, demonstrates Robinhood’s commitment to expanding its crypto services.
Robinhood’s planned expansion into crypto futures and the strategic acquisition of Bitstamp underscore its commitment to becoming a leading player in the cryptocurrency market, aiming to provide comprehensive investment solutions to its growing user base.
“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,” – Johann Kerbrat, general manager of Robinhood Crypto.
