Key Points:
- Robinhood’s BTC wallet worth $3B, among top three.
- Custodianship by Jump Trading for crypto trading.
- Holdings growth from $5.4K to $3B since May.
Recent investigative reports indicate that Robinhood possesses the third-largest BTC wallet, with holdings surpassing $3 billion worth of BTC. This amount is a fraction of the $11.5 billion in cryptocurrency that the platform safeguards for its users.
As per a report by Arkham Intelligence released around August 27, it has been revealed that Robinhood purportedly controls over $3 billion worth of Bitcoin within a single address. This analysis discloses that Robinhood’s holdings consist of 118,300 BTC, valued at approximately $3.07 billion, stored within an address beginning with “bc1ql.”
The activity of this address has been observed to persist up to the present day. While recent transactions have been relatively small, the wallet’s balance has experienced substantial growth since mid-May, when it held a mere $5,400 in Bitcoin. Following this period, the balance of the address began to escalate: by May 25, it contained around $1.4 billion in Bitcoin, and by June 18, it reached $3 billion.
Jump Trading, a Chicago-based trading firm recognized for powering Robinhood’s crypto trading functionalities, is responsible for safeguarding the funds in this address.
Robinhood has neither confirmed nor refuted its ownership of the aforementioned Bitcoin address, and the company has not issued any public statements on the matter. At the time of this report, Robinhood has not responded to inquiries for comment from CryptoSlate.
Robinhood’s Wallet Secures a Respectable Ranking
In terms of overall Bitcoin wallet size, Robinhood’s address holds the third position, according to data from Bitinfocharts. The two most sizable addresses belong to other cryptocurrency exchanges: the largest contains 248,597 BTC ($6.5 billion) and belongs to Binance, while the second-largest, holding 178,010 BTC ($4.6 billion), is the property of Bitfinex. It’s worth noting that the actual crypto holdings of each company are greater, as they each manage multiple wallets.
Furthermore, Robinhood’s wallet can be likened to the investments made by prominent corporate investors. For instance, MicroStrategy, which has integrated Bitcoin investments as a significant aspect of its portfolio, held $4.6 billion in Bitcoin by late June. Nonetheless, it’s important to distinguish these investments: while MicroStrategy acquires Bitcoin for its balance sheet, Robinhood’s holdings might represent cryptocurrency held on behalf of its clientele.
In the past, Robinhood had disclosed its broader cryptocurrency holdings in its quarterly financial reports. The company had declared that it held assets amounting to $11.5 billion tied to user cryptocurrency safeguarding responsibilities as of June 30, 2023.
The distribution of the remaining assets and the extent to which the total of $11.5 billion comprises cryptocurrencies beyond Bitcoin remain unclear.
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