Monetary providers firm Robinhood has announced that within the first quarter of the yr, the variety of its clients who traded cryptocurrency spiked to an all-time excessive of 9.5 million, up from 1.7 million within the fourth quarter of 2020.
The rise is a sign that the hype round cryptocurrency, notably bitcoin, is driving important development in retail funding. Robinhood gives bitcoin, dogecoin, ether and different cryptocurrencies, but it surely’s seemingly that this spike is essentially as a consequence of bitcoin buying and selling, as this constitutes the vast majority of exchange volume.
TechCrunch reported that the corporate had recorded about six million new clients on its cryptocurrency platform within the first two months of 2021. When put next with the earlier yr, the rise turns into much more pronounced. In 2020, Robinhood had a peak of 401,000 clients in a single month, and a month-to-month common of about 200,000 clients.
“We launched Robinhood Crypto to present our clients the chance to purchase and promote cryptocurrency — along with the vary of belongings provided via our brokerage, Robinhood Monetary,” Robinhood’s Christine Brown wrote within the announcement. “However there’s nonetheless numerous work to be executed. For the reason that starting of the yr, Robinhood’s crypto crew has already greater than tripled and we’re persevering with to develop. We’ve employed superb folks throughout engineering, safety, and compliance to assist us scale and construct crypto withdrawals and deposits rapidly and safely.”
Although Robinhood has a self-professed mission to democratize entry to monetary markets, it received criticism from many within the Bitcoin area for reducing off entry to customers who wished to commerce GameStop securities. By enabling entry to bitcoin, a really decentralized type of monetary asset, Robinhood may understand its mission extra successfully.