NEW YORK (Reuters) – On-line brokerage Robinhood on Thursday stated 6 million new customers signed up for its cryptocurrency providers within the first two months of 2021 amid greater retail buying and selling volumes and sharp rises within the costs of cryptocurrencies like Bitcoin and Dogecoin.
In 2020, Robinhood’s crypto division averaged about 200,000 new clients buying and selling on its platform monthly, the corporate stated in a weblog put up.
A Robinhood spokeswoman declined to say what number of total clients commerce cryptocurrencies via the app, which additionally gives inventory and choices buying and selling.
The value of Bitcoin, the world’s greatest cryptocurrency, rose greater than 300% in 2020 and this month hit a report excessive of $58,354 with a market capitalization above $1 trillion, however has since come off its highs.
Dogecoin has additionally soared in worth, getting swept up within the social media-fueled retail buying and selling frenzy that has pushed up the value of so-called meme shares, comparable to GameStop Corp.
Dogecoin was created largely as a satirical critique of the 2013 crypto frenzy, however can nonetheless be purchased and offered on digital forex exchanges and its value might be risky.
A tweet earlier this month by billionaire entrepreneur Elon Musk in help of Dogecoin, which relies on a preferred web meme, despatched the cryptocurrency up greater than 60%.
Robinhood presently permits clients to purchase, promote and maintain cryptocurrencies, and not too long ago stated it plans to provide clients the power to deposit and withdraw them for transfers to different wallets as properly.
In January, Robinhood angered a few of its clients when it quickly disabled a characteristic on its app that allowed customers to immediately purchase crypto securities because of risky market situations sparked by the GameStop buying and selling frenzy.
Robinhood is anticipated to go public this 12 months, with a price of greater than $20 billion.
Reporting by John McCrank; Modifying by Nick Zieminski