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In a Thursday announcement, the CEO noted that the high number of users on the waitlist shows that cryptocurrencies are becoming more important to users on the trading app.
Speaking to CBNC during the Disruptor 50 Summit, Tenev stated that,
In September, Robinhood announced that it was testing a feature for its digital wallet. This feature will enable investors to send and receive digital currencies as well as trade them. The wallet will also work together with the Robinhood application.
Robinhood supports seven cryptocurrencies such as Bitcoin, Ethereum, and others. Tenev stated that when users use the digital wallet, they would have a platform to send cryptocurrencies from the digital wallet to another wallet.
The CEO further added that several benefits come from the use of this digital wallet. The first is that it has a global reach and can easily be accessed by default by any user. The other benefit is that this digital wallet will enable users to store all their digital coins on one platform. Clients can then use this platform to trade, send and receive digital currencies from one wallet address to the other.
Robinhood is one of the small exchanges in the market, and it is late in launching this feature as leading exchanges such as Coinbase and Gemini already have offerings for this feature.
Robinhood was launched three years back, and over time, it has become one of the popular and prominent names in this sector. Cryptocurrency trading makes a major part of the firm’s revenues as in the previous quarter; over 51% of the entire exchange’s revenues came from cryptocurrency trading. This is a 3% increase compared to the previous year.
In the CNBC interview, Tenev affirmed that cryptocurrencies were here to stay, and their ease of use and global reach have made them attractive to a wide range of people. Robinhood had earned its investors that trading activity was slow during the third quarter in a recent announcement. This will affect the firm’s revenues during that quarter.
On Wednesday, Bitcoin hit an all-time high of $66,900, showing that new capital was flowing into the crypto space. However, the primary cryptocurrency dipped yesterday to around $62K, making most altcoins trade in the red zone.
Most market analysts believe that the Bitcoin bull market has been triggered by the approval of the ProShares Bitcoin Strategy ETF that debuted earlier this week. With more futures-based ETFs expected to debut trading next week, the bull rally is expected to resume.
However, strategists with JPMorgan believe that the futures ETFs have nothing to do with the bullish rally. According to these strategists, the new capital was flowing into Bitcoin because it was viewed as a better tool to hedge against inflation. The report by JPMorgan also added that many people preferred storing their wealth in the form of Bitcoin compared to gold.