Robinhood reported that 9.5 million users traded cryptocurrency through its app in Q1. This is almost 5 fold more than in the IV quarter of 2020.
Broker app Robinhood reported that 9.5 million of its clients were trading cryptocurrency in Q1 2021. This is 458% more than 1.7 million users engaged in crypto trading through Robinhood in Q4 2020.
The growth in demand for cryptocurrency trading is associated with a surge in the popularity of cryptocurrencies, according to Robinhood. The total market capitalization of cryptocurrencies doubled over the past three months and exceeded $2 trillion.
The Robinhood founders also note that they are are “fascinated by blockchain technology,” and that “the prospect of an open and decentralized global financial system, one where everyone can have access to financial services, strongly aligned with Robinhood’s mission.”
In January, Robinhood users reported problems with instant deposits for buying cryptocurrencies. It was possible to acquire coins only with the money that was already in the wallets. The company attributed these problems to delays in processing deposits due to the huge demand for cryptocurrency trading.
The Robinhood mobile app launched cryptocurrency trading in February 2018. In January 2019, Robinhood received a BitLicense for cryptocurrency services from the New York Department of Financial Services (NYDFS).