Robinhood, the popular stock trading and investing platform, has announced plans to support bitcoin and ether futures as part of a broader strategy to expand into derivatives trading.
The news, revealed at Robinhood’s HOOD Summit on Wednesday, also introduced a new desktop platform, “Robinhood Legend,” aimed at more active traders.
In a statement following the summit, Robinhood emphasized customer demand as the driving force behind the move, saying, “You asked and we delivered. We’re launching futures trading directly in the Robinhood app, letting customers trade the S&P 500, oil, bitcoin and more.”
The introduction of bitcoin and ether futures, slated to roll out in the coming months, builds on earlier reports from July. At the time, Bloomberg noted that Robinhood was eyeing CME-based bitcoin and ether futures for its U.S. customers and exploring the use of Bitstamp’s licenses to offer perpetual futures for cryptocurrencies like Bitcoin in Europe. While these plans were not immediately confirmed by the company, Robinhood has now solidified its commitment to rolling out futures products, starting with bitcoin and ether.
Robinhood’s expansion into cryptocurrency derivatives follows the company’s ongoing efforts to grow its crypto operations, despite regulatory hurdles. Its crypto division, Robinhood Crypto, already offers access to Bitcoin and Ethereum exchange-traded funds (ETFs) in the U.S., as well as direct purchases of these cryptocurrencies. However, the platform faces challenges, including a Wells notice from the Securities and Exchange Commission (SEC) issued in May.
Even so, the company remains focused on its crypto strategy, with rumors circulating that it may also be considering launching a stablecoin, though no immediate plans have been confirmed.
In addition to its crypto offerings, Robinhood also unveiled its new desktop trading application, Robinhood Legend, which provides active traders with a customizable platform and index options. Robinhood’s CEO, Vlad Tenev, highlighted the goal of empowering users through these tools, stating, “With Robinhood Legend, futures and index options, we’re helping customers harness the full power of the markets so they can take control of their financial future.”
Following the announcements, Robinhood’s stock (HOOD) rose by 2.8% in pre-market trading, bringing its year-to-date gains to over 111%.
