NEW YORK (Reuters) – On-line brokerage Robinhood on Thursday mentioned 6 million new customers signed up for its cryptocurrency providers within the first two months of 2021 amid increased 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 prospects buying and selling on its platform per thirty days, the corporate mentioned in a weblog publish.
A Robinhood spokeswoman declined to say what number of general prospects commerce cryptocurrencies by way of the app, which additionally gives inventory and choices buying and selling.
The value of Bitcoin, the world’s largest 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, resembling 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 worth could be unstable.
A tweet earlier this month by billionaire entrepreneur Elon Musk in assist of Dogecoin, which relies on a preferred web meme, despatched the cryptocurrency up greater than 60%.
Robinhood at the moment permits prospects to purchase, promote and maintain cryptocurrencies, and lately mentioned it plans to offer prospects the power to deposit and withdraw them for transfers to different wallets as effectively.
In January, Robinhood angered a few of its prospects when it quickly disabled a function on its app that allowed customers to immediately purchase crypto securities attributable to unstable market circumstances sparked by the GameStop buying and selling frenzy.
Robinhood is anticipated to go public this yr, with a price of greater than $20 billion.
Reporting by John McCrank; Enhancing by Nick Zieminski