According to Arkham Intelligence, Robinhood, a trading and investment platform, has solidified its position as the third-largest holder of Bitcoin. The wallet information reveals that the platform possesses more than $3 billion worth of Bitcoin in a single wallet. In the hierarchy of Bitcoin holdings, Robinhood is outpaced solely by the cryptocurrency exchanges Binance and Bitfinex.
Robinhood, the prominent investment and trading platform, has been officially recognized as the third-largest holder of Bitcoin, as confirmed by Arkham Intelligence.
Wallet data reveals that Robinhood maintains a Bitcoin stash exceeding $3 billion within a single wallet. Its Bitcoin holdings rank only behind those of the cryptocurrency exchanges Binance and Bitfinex.
Over the past three months, Robinhood has amalgamated 118,300 BTC into this wallet from various smaller wallets. Commencing on March 8, 2023, and culminating on July 14, these transactions are evident through BitInfoCharts data. Notably, all of Robinhood’s holdings are on the Bitcoin mainnet.
Initially, the ownership of these transfers fueled community debates, ranging from the finance giant BlackRock to the crypto exchange Gemini, until Arkham Intelligence confirmed the entity behind the wallet.
Data from BitInfoCharts discloses that Robinhood’s Bitcoin holdings reached their zenith valuation of $3.72 billion on July 14. However, the subsequent depreciation correlates with the recent downturn in Bitcoin’s price. As of August 29, Robinhood’s BTC holdings are appraised at $3.08 billion.
Revealing Robinhood’s Crypto Exposure:
These substantial BTC holdings underscore Robinhood’s extensive exposure to the cryptocurrency market, even though its user base doesn’t contribute significantly to crypto trading volumes.
Robinhood reported its second-quarter earnings at the start of this month, unveiling that crypto trading revenue amounted to a mere $31 million in Q2. This marked an 18% decline from the $38 million achieved in the first quarter. These figures constituted 16% of its overall $193 million trading revenue. Notably, the dip in crypto trading was accompanied by a 7% decrease in trading revenue across all sectors.
However, Robinhood’s $3 billion in BTC isn’t the platform’s only link to the crypto domain. The company reports holding $11.5 billion in other crypto assets as part of its user safeguarding obligations. It functions as a crypto custodian for all user holdings, including Bitcoin.
Significance of Robinhood’s Holdings:
Prominent Bitcoin addresses predominantly belong to cryptocurrency exchanges. Among the top 100 holders are Binance, Bitfinex, OKX, Crypto.com, and others.
Yet, Robinhood’s entry into the top three Bitcoin holders might signal a shift within the crypto industry. Unlike most top holders, Robinhood is a conventional broker, primarily focusing on stocks and options for its user base. This suggests that Bitcoin and the broader crypto landscape could be influenced by regular individuals rather than just large crypto entities.
However, this shift also entails risk for the industry. Robinhood’s user base has gained a reputation for speculative trading and high-risk investments. Notably, these investors have supported meme shares like Gamestop, AMC, and Bed Bath & Beyond, along with holding $2.63 billion in Dogecoin.
Some have questioned whether Robinhood’s characteristic short-term investment approach extends to its Bitcoin holdings.
As of August 29, Bitcoin is experiencing a price increase, with the largest cryptocurrency gaining 3% in the past 24 hours and 4% over the preceding seven days.
The Bitcoin Holders’ Landscape:
Cryptocurrency exchanges constitute a significant portion of top BTC holders. With Robinhood securing the third spot, Binance and Bitfinex occupy the top two positions.
Binance, as the leading cryptocurrency exchange by trading volume, maintains the first rank with 248,597 BTC, equating to 1.18% of all Bitcoin. Meanwhile, Bitfinex holds 178,010 BTC, approximately $4.46 billion.
When combined, the top 100 BTC holders possess 13% of the circulating supply of 19.4 million Bitcoins, with Robinhood accounting for 0.56% of this share.
As of now, Robinhood has not made any public statement regarding Arkham Intelligence’s newly disclosed data.
