Robinhood is expanding its reach into the futures market by adding Bitcoin and Ethereum alongside oil and the S&P 500 index as part of its broader strategy to attract seasoned traders.
A Robinhood spokesperson told Decrypt on Wednesday its futures offerings via its trading app is expected in the “coming months.”
The offerings will include Bitcoin contracts, micro Bitcoin futures, Bitcoin Friday futures, Ethereum futures, and micro Ethereum futures, the spokesperson said.
Micro futures are smaller contracts 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.
The platform is designed specifically for active traders, aiming 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 bid to compete with established players like Charles Schwab and Morgan Stanley’s E*TRADE, which already offer crypto futures.
It comes as the crypto market continues to heat up, with the price of Bitcoin approaching its all-time high, near $73,700.
“With some of the lowest fees in the industry and an elegant mobile interface, there will be no reason to trade futures anywhere else,” JB Mackenzie, Robinhood’s vice president and general manager of Futures and International said in a statement.
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.
The move is expected to drive further interest among cryptocurrency traders looking for more sophisticated exposure to assets like Bitcoin.
Robinhood Legend, meanwhile, will offer advanced charting tools, customizable layouts, and real-time data.
“By talking with active traders, we realized there is frustration with legacy offerings,” Steve Quirk, chief brokerage officer at Robinhood, said in the statement.
“Moving back and forth between apps or charting platforms can be cumbersome and time-consuming. We set out to reimagine what a modern, intuitively designed active trading platform should look like,” he added.
The platform will further support futures and index options trading as it continues to roll out through 2024.
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In conclusion, Robinhood’s expansion into the futures market by introducing Bitcoin and Ethereum contracts alongside other assets like oil and the S&P 500 index marks a significant move towards catering to experienced traders. The addition of micro futures is aimed at making futures trading more accessible to a wider range of investors, reflecting a strategic shift in the platform’s offerings.
The announcement at the HOOD Summit, along with the introduction of the desktop platform Robinhood Legend, signifies Robinhood’s commitment to providing cutting-edge tools and real-time data to its users. By focusing on derivatives trading, Robinhood aims to compete with established players in the industry, offering competitive fees and an intuitive interface that will attract traders looking for sophisticated exposure to assets like Bitcoin.
With the cryptocurrency market gaining momentum and Bitcoin nearing its all-time high, Robinhood’s move to offer futures trading for as low as $0.50 per contract for Gold subscribers is expected to generate interest among traders seeking diversified investment opportunities. The platform’s advanced charting tools and customizable layouts on Robinhood Legend will further enhance the trading experience for active traders.
In response to feedback from traders, Robinhood’s emphasis on streamlining the trading process and eliminating the need to switch between multiple platforms highlights its commitment to innovation. As the platform continues to evolve and support futures and index options trading in the coming years, Robinhood is poised to become a significant player in the futures market.
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