It’s been a big year for crypto, and Robinhood shared some stats today providing more evidence that the crypto boom is more than just hype -- at least for now.
In a blog, Christine Brown, Robinhood’s head of crypto operations, revealed that in the first quarter of 2021, 9.5 million of its customers traded crypto via the company’s platform. That’s up big time from the 1.7 million customers who traded crypto in the 2020 fourth quarter. The company first launched its Crypto unit in January of 2018 but hasn't provided numbers in previous quarters.
In February, Robinhood revealed it had seen six million new customers on Robinhood Crypto in the first two months of this year alone. That compares to a peak of 401,000 in a single month in 2020, with a monthly average of about 200,000 customers.
Brown says the company’s intent behind launching Robinhood Crypto in the first place was to give its customers the opportunity to buy and sell cryptocurrency in addition to the range of assets offered through its brokerage, Robinhood Financial.
Robinhood Crypto currently offers seven tradeable coins: Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic and Litecoin.
Brown also noted that Robinhood’s crypto team has already more than tripled since the beginning of the year, although it’s not entirely clear how many staffers it currently has on that team. There are a number of crypto-related openings on its careers site, including an open “Crypto CFO” role.
The company is making clear that crypto is an important part of its overall business and part of its mission to democratize access to the masses.
“All it takes to spend, trade, and store cryptocurrency, theoretically, is an internet connection — you don’t need access to a big line of credit, or startup capital,” Brown wrote. “You don’t even have to be awake at a certain time of day to trade. The crypto market doesn’t close. Crypto was born out of a mission to take power away from institutions and return it to the people.”
Last August, Robinhood raised $200 million more at a new, higher $11.2 billion valuation in its third raise of the year before filing to go public in March. The company has had a tumultuous past year or so that was filled with time in front of Congress, bad PR from a user’s suicide and settlements with the SEC.
Meanwhile, TechCrunch also reported earlier this week that in the first quarter of 2021, American consumer cryptocurrency trading giant Coinbase grew sharply, generating strong profits at the same time. Specifically, the company notched revenue of $1.8 billion in Q1 2021, up from $585.1 million in Q4 2020. Net income totaled “approximately $730 million to $800 million,” up from $178.8 million in Q4 2020.
This article was updated post-publication with some additional numbers