Robinhood’s crypto business explodes in Q1 despite GameStop controversy

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Robinhood, a popular trading app targeting millennials and other inexperienced investors, has emerged as a major hub for cryptocurrencies, providing further proof that digital assets are attracting the mainstream.

The company announced Thursday that 9.5 million users traded digital assets on its platform during the first quarter of 2021, a six-fold increase from the previous quarter.

Robinhood offers commission-free trading for several major cryptocurrencies including Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Litecoin (LTC) and Ethereum Classic (ETC) ). It provides real-time market data for nearly a dozen additional digital assets.

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The fact that Robinhood’s crypto activity is on the rise is not surprising given the size and rate of growth of the crypto market over the past six months. The combined value of all cryptos hit $ 2 trillion in early April, having doubled in just three months.

Much of those gains have been catalyzed by Bitcoin’s nearly double increase since January. As Bitcoin’s gains moderated, altcoins took over. Unnamed cryptos Bitcoin now make up around 45% of the overall market, according to data from CoinMarketCap.

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But 2021 hasn’t been all positive for Robinhood. The company was embroiled in controversy after deciding to halt trading in GameStop and other stocks that had gained popularity among retail traders. As a result, the company’s public opinion plummeted, forcing its executives to rethink their plans for public listing.

Despite the controversy, Robinhood is continuing its initial public offering, according to documents filed with the U.S. Securities and Exchange Commission last month. Although the company did not specify the date of its IPO, it confirmed that the offer will continue “after the SEC considers its review process, subject to market and other conditions.” .

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Robinhood joins crypto-focused exchanges Coinbase and Kraken to post stellar first quarter results. As TBEN recently reported, Kraken looks set to follow in Coinbase and Robinhood’s footsteps in pursuing a public offering, possibly as early as next year.