Robinhood Launches Free Crypto Trading in Europe
Robinhood Markets Inc. is making waves in the European crypto market with its latest announcement covered by Bloomberg.
The platform is introducing commission-free trading, a step that follows its successful entry into the UK stock market. This move is poised to empower European investors, granting them access to a diverse range of more than 25 cryptocurrencies, including popular options like Bitcoin, Ethereum, and Solana. It’s a pivotal moment in the region’s rapidly evolving digital asset landscape, coinciding with the recent surge in crypto prices.
An interview with Johann Kerbrat, Robinhood Crypto’s General Manager, revealed an innovative addition to accompany the app’s launch: a cashback-style loyalty program. This program will reward users with a percentage of their monthly trading volume in Bitcoin, enhancing their experience and fostering loyalty among the platform’s growing user base.
Robinhood’s revenue strategy for its European crypto services involves earning a rebate from market makers and trading venues executing trades. This approach in Europe is estimated to yield approximately “65 basis points” per trade, significantly higher than the 35 basis points earned from cryptocurrency orders in the United States.
Notably, this model has proven successful, evident in the substantial 75% surge in crypto trading volumes on Robinhood in November compared to the previous month.
Despite this significant European expansion, Robinhood refrains from extending its crypto services to UK investors due to regulatory uncertainties. However, the company’s registration as a virtual currency exchange operator in Lithuania since September underscores its commitment to navigating regulatory challenges and fostering a global crypto community.
With crypto prices on the rise and the anticipation surrounding a Spot Bitcoin ETF, Robinhood’s foray into Europe not only capitalizes on the crypto boom but also sets the stage for further growth. The platform’s future plans include introducing features like crypto holding transfers and expanding its range of tokens, demonstrating its dedication to evolving alongside the dynamic crypto landscape.