It should come as little surprise that with the manic trend of cryptocurrency and NFTs, investors and organizations around the world have angled to get in on the action while it’s still hot. And being an investment platform, Robinhood is uniquely positioned to take advantage of it. The investor app platform launched crypto wallets late in 2021 in Q4, Robinhood reported that it saw a massive 304 percent increase year-over-year in cryptocurrency activity in its market.
This noteworthy stat was reported in Robinhood’s (HOOD) Q4 2021 earnings results, which were posted on its investor relations website on January 27, 2022. According to the report, Robinhood’s Q4 2021 saw around $48 million USD worth of cryptocurrency activity move through the platform. This is up a massive 304 percent from the $12 million that was exchanged on the platform in Q4 2020. While Robinhood has been slow to work around currencies such as Dogecoin, it did tease the testing of a cryptocurrency wallet feature in September 2021, likely contributing to the increase in crypto activity on the platform.
Whether or not it’s a good idea to trust Robinhood with cryptocurrency is an arguable topic. Many will recall the platform temporarily shutting down trade on GameStop stock in 2021 as volatility of the stock skyrocketed thanks to groups like r/WallStreetBets. The company has also found itself under investigation by the US Congress and Securities Exchange Commission (SEC) for some of its questionable business practices. Nonetheless, cryptocurrencies such as Bitcoin and Dogecoin continue to be a popular market, aided by the parallel craze in non-fungible tokens (NFTs) and the various markets and applications centered around that market.
Either way, Robinhood is a popular space for investment (for better or worse) and cryptocurrency currently goes hand in hand with that. As Robinhood moves into its next fiscal year, we would expect growth in cryptocurrency activity on the platform to continue to be a trend in further quarterly earnings results.