Following the GameStop saga in which Robinhood incurred the ire of regulators, hedge fund managers and rank-and-file traders the company seems to have been successful in the launch and operation of its commission-free trading solution for Bitcoin, Ethereum and other popular cryptocurrencies.
The app which gathered momentum with Millennials and rookie investors has been able to successfully to branch into cryptocurrencies, offering numerous digital assets with a mainstream appeal.
According to Robinhood data released on Thursday, some 9.5 million users have already traded digital assets on its platform in the first quarter of 2021, or a six-fold increase compared to Q4 2020.
Naturally, a big driver of this performance was the fact that Robinhood charges no commissions and, additionally, runs a number of popular cryptocurrencies, including Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Litecoin (LTC), and others.
The business was partly propelled by Robinhood's own ability to foresee important economic developments and partly because of Bitcoin's heady valuation jump bolstered by institutional investment.
Robinhood has faced a few difficulties, though, and specifically in the case of GameStop and other stocks when investors from Reddit decided to use the app to bet against short-sellers and start purchasing GameStop and other vulnerable stocks that left hedgefund manager smarting billions of dollars.
The ensuing commotion that drew regulators and livid investors in conflict with Robinhood didn't stop the company from seeking an initial public offering, though, and it filed all the paperwork with the Securities and Exchange Commission last month.