Robinhood the 5th Largest in Ethereum Holdings

Arkham Intelligence reveals Robinhood's massive Ethereum wallet holding 1.5M ETH worth $2.72B, along with $177.1M in ERC-20 tokens.

Aug 31, 2023 - 18:24
Oct 19, 2023 - 13:39
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Robinhood the 5th Largest in Ethereum Holdings
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Arkham Intelligence, a crypto analytics firm, recently disclosed that Robinhood holds the 5th largest Ethereum wallet, containing more than 1.5 million ETH valued at approximately $2.72 billion. This revelation came after Arkham had previously identified Robinhood as the third-largest Bitcoin holder, with a wallet containing 118,300 BTC worth around $3 billion.

Interestingly, Robinhood's Ethereum wallet doesn't just hold ETH. It also contains over 100 other ERC-20 tokens, collectively valued at about $177.1 million. This brings Robinhood's total Ethereum-based token holdings to more than $2.71 billion. Among these tokens are popular names like Shiba Inu ($163 million), Chainlink ($14.23 million), and Avalanche ($10.4 million).

A question that naturally arises is whether these funds belong to Robinhood or its users. According to Arkham, the wallet holds funds in custody on behalf of Robinhood's users, in compliance with SEC regulations requiring a 1:1 backing of crypto balances.

Ethereum Swaps

Robinhood recently introduced Ethereum swaps, allowing users to trade ETH for over 200 different assets. This feature is currently available to a select group of users but is expected to roll out to all users in the coming weeks. The wallet, launched about six months ago, is already used by hundreds of thousands of users across 140 countries.

With Robinhood's increased exposure and the introduction of Ethereum swaps, the Ethereum network is likely to see a surge in activity. Data from Etherscan shows that the Ethereum network has been settling more than 1 million transactions daily for the past month, a number that could rise with Robinhood's new feature.

Even as Robinhood expands its footprint in the cryptocurrency sector, it has struggled to keep trading volumes high. In a report from June, the platform indicated a significant 68% drop in cryptocurrency trading compared to the same period last year. The company's internal data showed that the trading volume for May 2023 was around $2.1 billion, a stark contrast to the $6.6 billion recorded the previous year.

According to Robinhood's earnings report for the second quarter of 2023, the revenue generated from cryptocurrency trading was $31 million, marking an 18% decline from the prior quarter's $38 million.

Additionally, Robinhood recently severed its business ties with market-making firm Jump Trading, possibly due to the increasingly complex regulatory conditions in the United States.

Philip Bohmer Philip is a seasoned journalist that brings clarity to the complex world of cryptocurrencies through his articulate and insightful articles. His passion for blockchain technology fuels his writing, making him a trusted voice in the rapidly evolving digital currency landscape.