Robinhood Markets Inc. (NASDAQ:HOOD) is contemplating providing cryptocurrency futures in each the US and Europe. This potential enlargement was first reported by Bloomberg, citing nameless sources conversant in the matter, because the plans haven’t but been made public.
Increasing Crypto Choices
In accordance with these sources, as soon as Robinhood completes its $200 million acquisition of Bitstamp Ltd. subsequent yr, the buying and selling platform plans to leverage Bitstamp’s licenses to supply perpetual futures for Bitcoin and different cryptocurrencies in Europe. Moreover, Robinhood is planning to introduce CME-based futures for Bitcoin and Ether in the US. Nevertheless, the plans are nonetheless underneath dialogue and should change. A Robinhood spokesperson said, “We have now no imminent plans to launch these choices.”
Robinhood has been actively increasing its cryptocurrency publicity. In November 2023, the corporate introduced plans to begin crypto buying and selling within the European Union and brokerage operations within the U.Ok.
Regulatory and Market Developments
At the moment, Robinhood holds a Zacks Rank #2. The entire listing of right now’s Zacks #1 Rank shares may be discovered right here. The approval of U.S. Bitcoin exchange-traded funds at first of 2024 has considerably elevated the demand for futures.
On January 10, 2024, the Securities and Trade Fee authorized rule modifications permitting the launch of spot Bitcoin ETFs in the US. This resolution marked a major shift within the regulatory panorama, which had beforehand been cautious in regards to the largely unregulated crypto markets. The SEC’s approval of spot Bitcoin ETFs represented a turning level, encouraging extra institutional funding in cryptocurrencies.
In February, Franklin Sources Inc. (NYSE:BEN) grew to become the eighth agency to file for a spot Ethereum ETF. In November 2023, BlackRock Inc. (NYSE:BLK) filed for a spot Ethereum ETF named iShares Ethereum Belief, which led to a surge in Ethereum costs to their highest ranges of the yr. In June 2023, BlackRock grew to become the primary asset supervisor to file for a spot Bitcoin ETF, paving the best way for different asset managers to comply with swimsuit.
Market Reactions and Future Prospects
Together with Franklin Sources, all companies competing to introduce spot Ethereum ETFs had already rolled out spot Bitcoin merchandise in January, indicating robust market curiosity and potential for progress in cryptocurrency funding merchandise.
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