Robinhood hits new low as FTX US and Bitstamp USA move into stocks

Crypto exchange FTX US and Bitstamp USA are introducing stock trading, which will be another blow to Robinhood as its share price plunges to new lows.

US FTX President Brett Harrison tweeted Tuesday that the cryptocurrency exchange is “working hard on stocks.” comment The launch will come in “two months”.

This isn’t FTX’s first foreplay with stocks. Back in October 2020, the global arm of the cryptocurrency exchange launched a feature to allow its customers to access split trading in token stocks.

Robert Zagota, CEO of Bitstamp USA, said in an interview on January 14 with Bloomberg that the exchange is considering entering stocks, non-fungible tokens (NFTs) and crypto derivatives.

Offering low-cost stock trading will allow the two crypto exchanges to attract a similar user base of stock investors such as Robinhood, which offers crypto and stock trading.

Robinhood ($HOOD) is unlikely to welcome additional competition at this point. With the meme and cryptocurrency trading slowing, the US financial services firm closed at an all-time low of $15.30 on January 13.

Related: Kraken CEO Reverses Expectations of $100,000 BTC 2021: Crypto Winter Is Now Possible

Robinhood is approaching the market in the opposite direction of the two exchanges, starting with stocks and moving to cryptocurrencies. It has been adding new features to its crypto service for some time, and plans to roll out the beta version of the crypto wallet feature this month. This will enable users to withdraw cryptocurrency from the platform.

One potential bright spot for Robinhood is the interest of the Shiba Inu community. Shiba Inu Coin ($SHIB) has been circulating rumors that it could be listed for trading on Robinhood as early as next month. The altcoin is up almost 30% in three days. But CEO Vlad Tenev has denied such reports on multiple occasions.