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 noted 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” showing “significant interest in cryptocurrencies.” Digital assets accounted for $233 million in transaction-based revenues, compared to $5 million in the second quarter of 2020. This was also the very first quarter where most of Robinhood’s new customers placed their first trade in crypto.

Importantly, Robinhood’s net revenues tagged $565 million, a 131 percent increase compared to $244 million in Q2 2020. The surge in crypto trading now accounts for 41 percent of the company’s revenue. The Dogecoin trading frenzy at the start of the year also resulted in 62 percent of Robinhood’s crypto revenue. The company was also encouraged by the number of people accessing 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 saw strong growth this quarter among women investors in particular, and IPO Access, which gives customers an opportunity to invest in companies at their IPO price,

Bigger picture on Robinhood

Notably, the monthly active users on Robinhood more than doubled year-over-year (YoY) from 10.2 million to 21.3 million. Funded accounts also increased by 130 percent over the same period. On top of that, the value of assets in Robinhood’s custody tripled YoY to reach $102 billion.

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

Last month, the retail trading app listed on the NASDAQ commencing trading at $38 per share. As such, this was its first 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 its public debut, Robinhood purchased Say Technologies, a 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 and hold the multiple listed cryptocurrencies on the app. However, they cannot access these coins to transfer them to other wallets.

Before going public, Robinhood has announced plans to enable crypto deposits and withdrawals but this is yet to be actualized. Questions about Robinhood’s roadmap for international expansion and joint accounts were the second and third most-asked. Interestingly, the fourth trending question was whether initial investors could get a Robinhood hat and hoody jacket. That said, the firm is currently working on a feature to protect investors from crypto volatility.

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