Best crypto insights delivered straight to your inbox.
- Robinhood plans to offer cryptocurrency futures trading in the U.S. and Europe after acquiring Bitstamp next year.
- The company received a Wells notice from the SEC but continues to expand its crypto offerings.
- The acquisition of Pluto Capital will enhance user experience with AI-powered financial planning tools.
Financial giant Robinhood is planning to offer cryptocurrency futures in the U.S. and Europe soon. The company aims to make these services available after completing its $200 million acquisition of Bitstamp next year.
Bitstamp holds licenses that Robinhood wants to use to offer perpetual futures for Bitcoin and other cryptocurrencies in Europe. In the U.S., it wants to introduce CME-based futures for Bitcoin and Ether.
This expansion strategy comes despite no immediate plans to launch these offerings, as stated by a Robinhood spokesperson. Talks are ongoing, and final plans may still change.
Market dynamics amid Robinhood’s expansion
The crypto derivatives market is larger than the spot market worldwide. In May, centralized exchanges recorded $1.57 trillion in spot trading volumes, while derivatives volumes reached $3.69 trillion.
Robinhood has been expanding its crypto offerings, even as it deals with regulatory scrutiny. The company received a Wells notice from the U.S. Securities and Exchange Commission (SEC) warning of potential enforcement action.
Despite this, Robinhood moved forward with its acquisition plans. In June, it agreed to acquire Bitstamp, with the deal expected to close in the first half of 2025.
Additionally, in March, the company bought Marex FCM, which has the license to offer futures in the U.S. Coinbase already offers derivatives, making the competition stiff for Robinhood in this space.
Earlier today, the financial giant also announced the acquisition of Pluto Capital, an AI-powered investment research platform.
This acquisition reportedly aims to enhance the user experience by providing sophisticated financial planning tools to a broader audience.
Pluto Capital is known for its strong AI algorithms, which offer detailed insights into market trends and personalized investment strategies. Mayank Agarwal, VP of Engineering at Robinhood, expressed excitement about the acquisition. He stated:
“We are thrilled to welcome Pluto and Jacob Sansbury to Robinhood. They have built an impressive platform that is highly regarded in the financial services industry. Importantly, their expertise in artificial intelligence coupled with a mission-aligned passion to democratize finance will complement our team’s effort to bring AI-powered tools to our customers.”
Jacob Sansbury, CEO of Pluto, stated that Robinhood is the ideal destination to build products that democratize access to financial services like wealth management and financial planning through state-of-the-art AI.
Reporting by Jai Hamid
If you're reading this, you’re already ahead. Stay there with our newsletter.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Jai Hamid
Jai Hamid has been covering crypto, stock markets, technology, the global economy, and the geopolitical events that affect markets for the past 6 years. She has worked with blockchain-focused publications including AMB Crypto, Coin Edition, and CryptoTale on market analyses, major companies, regulation, and macroeconomic trends. She has attended London School of Journalism and thrice shared crypto market insights on one of Africa’s top TV networks.
CRASH COURSE
- Which cryptocurrencies can make you money
- How to boost your security with a wallet (and which ones are actually worth using)
- Little-known investment strategies that the pros use
- How to get started investing in crypto (which exchanges to use, the best crypto to buy etc)