Robinhood, a major retail trading platform, is exploring the launch of crypto futures in the US and Europe. The company has not set a specific timeline for this potential expansion, but it seems that this teeny tiny revolution is already looming at the horizon.
The move follows Robinhood's recent acquisition of Bitstamp, a cryptocurrency exchange. With that purchase Robinhood immediately became quite a prominent player in the crypto industry.
Johann Kerbrat, Robinhood's general manager of crypto, commented on the acquisition. He emphasized Bitstamp's resilience and strong reputation among investors.
The acquisition also aims to bolster Robinhood's international expansion. But what's even more important, the move also seeks to attract institutional customers to the platform. Though institutional trade might have questionable consequences for Robingood in the light of some recent events.
In May, Robinhood received a Wells Notice from the SEC. This warning indicates potential legal action against the company.
Dan Gallagher, Robinhood's chief legal officer, responded to the notice. He asserted that the assets on their platform are not securities, and as such shouldn't be in sight of SEC.
Gallagher stated, "We firmly believe that the assets listed on our platform are not securities."
Robinhood, founded in 2013, has become a prominent player in retail investing. It gained popularity for its commission-free trades and user-friendly mobile app. Millions of users come to the platform to buy and sell stock, ETF, options, and cryptocurrency.
