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Robinhood says over 60% of its funded accounts traded crypto

  • Robinhood Q2 2021 earnings report showed that over 60 percent of its funded accounts traded crypto.
  • The firm’s retail shareholders want a crypto wallet feature on the app for transferring their coins to other wallets.


Popular zero-fee trading app Robinhood observed that over 60 percent of its net cumulative funded accounts were trading crypto. This was reflected in its second-quarter 2021 results published on Aug. 18.

More so, Robinhood customers have been trading crypto at “record levels” displaying “significant interest in cryptocurrencies. ” Digital assets accounted for $233 million in transaction-based profits, compared to $5 million within the second quarter of 2020. This was also the very first one fourth where most of Robinhood’s new customers placed their first trade in crypto.

Importantly, Robinhood’s net revenues tagged $565 million, a 131 % increase compared to $244 mil in Q2 2020. The surge in crypto trading now accounts for 41 percent of the company’s revenue. The particular Dogecoin trading frenzy in the beginning of the year also resulted in 62 percent of Robinhood’s crypto revenue. The company seemed to be encouraged by the number of people being able to access Robinhood’s financial system for the first time. Vlad Tenev, CEO and co-founder of Robinhood added;

We’re happy to expand access through products like commission-free crypto trading, which noticed strong growth this one fourth among women investors in particular, and IPO Access, which provides customers an opportunity to invest in companies at their IPO cost,

Bigger picture on Robinhood

Notably, the particular monthly active users on Robinhood more than doubled year-over-year (YoY) from 10. 2 million to 21. several million. Funded accounts furthermore increased by 130 percent over the same period. In addition, the value of assets in Robinhood’s custody tripled YoY to achieve $102 billion.

Despite peaking records of crypto trading, the firm reported an overall loss of $464 million to get Q2. These were, however , attributed to accounting adjustments due to the rising and falling warrants and notes held by the company.

Last month, the retail trading application listed on the NASDAQ commencing trading at $38 per reveal. As such, this was its 1st earnings report since going public. On Wednesday, shares closed at $49. 80, up 6. 71 percent from the previous closing point, MarketWatch shows.

Right after the public debut, Robinhood purchased Say Technologies, a general public question crowdsourcing platform. The Reddit-like interface allows retail shareholders to ask and upvote questions, with Robinhood’s management addressing the most popular concerns.

Lately, the question, “Is Robinhood getting a crypto wallet? ” has been the most popular on Say. Users can buy, sell plus hold the multiple listed cryptocurrencies on the app. However , they can not access these coins in order to transfer them to other purses.

Prior to going public, Robinhood has introduced plans to enable crypto deposit and withdrawals but this really is yet to be actualized. Queries about Robinhood’s roadmap to get international expansion and mutual accounts were the second and third most-asked. Interestingly, the fourth trending question was whether or not initial investors could get the Robinhood hat and hoody jacket. That said, the company is currently working on a feature to guard investors from crypto volatility.

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