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 acquainted with the matter, because the plans haven’t but been made public.
Increasing Crypto Choices
Based on 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 below 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.Okay.
Regulatory and Market Developments
At present, Robinhood holds a Zacks Rank #2. The entire record of in the present day’s Zacks #1 Rank shares will be discovered right here. The approval of U.S. Bitcoin exchange-traded funds originally of 2024 has considerably elevated the demand for futures.
On January 10, 2024, the Securities and Change Fee authorised rule modifications permitting the launch of spot Bitcoin ETFs in the US. This choice 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 Assets Inc. (NYSE:BEN) turned 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 turned the primary asset supervisor to file for a spot Bitcoin ETF, paving the best way for different asset managers to observe go well with.
Market Reactions and Future Prospects
Together with Franklin Assets, all companies competing to introduce spot Ethereum ETFs had already rolled out spot Bitcoin merchandise in January, indicating sturdy market curiosity and potential for development in cryptocurrency funding merchandise.
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