Robinhood Expands Futures Market with Bitcoin and Ethereum Offerings
Robinhood, the popular trading app, is making a bold move into the futures market by adding Bitcoin and Ethereum to its offerings. This expansion is part of the company’s strategy to attract seasoned traders and compete with established players in the industry.
According to a Robinhood spokesperson, the futures offerings, which will include Bitcoin contracts, micro Bitcoin futures, Bitcoin Friday futures, Ethereum futures, and micro Ethereum futures, are expected to be available in the “coming months.” These micro futures are designed to make futures trading more accessible to retail and smaller-scale investors.
The announcement was made during Robinhood’s first-ever customer conference, HOOD Summit, where the company introduced its new desktop platform, Robinhood Legend. This platform is specifically designed for active traders and aims to offer sophisticated tools and real-time data, including the ability to trade futures and index options directly from the app.
Robinhood is positioning its focus on derivatives as a way to compete with established players like Charles Schwab and Morgan Stanley’s E*TRADE, which already offer crypto futures. The move comes as the crypto market heats up, with the price of Bitcoin nearing its all-time high.
“With some of the lowest fees in the industry and an elegant mobile interface, there will be no reason to trade futures anywhere else,” said JB Mackenzie, Robinhood’s vice president and general manager of Futures and International.
Gold subscribers will be able to trade futures for as low as $0.50 per contract, while non-Gold users will pay $0.75, undercutting traditional brokerages. This move is expected to drive further interest among cryptocurrency traders looking for more sophisticated exposure to assets like Bitcoin.
Robinhood Legend will offer advanced charting tools, customizable layouts, and real-time data to cater to the needs of active traders. The platform will continue to support futures and index options trading as it rolls out through 2024.
Overall, Robinhood’s expansion into the futures market with Bitcoin and Ethereum is a significant step for the company as it aims to attract more experienced traders and compete with established players in the industry.