Robinhood Revealed to be Third-Largest Bitcoin Holder With $3B in BTC
Investing platform Robinhood holds over $3 billion in bitcoin in a single wallet, making it the third-largest bitcoin holder, behind Binance and Bitfinex.
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Posted 8/28/2023, 10:02:00 AM
coindesk.com
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Former Goldman Sachs executive Raoul Pal predicts that institutional investment in cryptocurrencies will drive the total market cap to over $10 trillion, more than triple its peak in 2021, as financial institutions follow the lead of family offices in entering the crypto space.
A wallet that accumulated $3 billion worth of Bitcoin in the last three months has revealed its owner to be Robinhood, although there is also evidence pointing to crypto exchange Gemini, raising doubts about Robinhood's ownership.
Bitcoin holds steady at $26,000 ahead of Jerome Powell's speech at Jackson Hole, while Binance reaches out to projects with low-liquidity tokens to enhance liquidity protection, and Num Finance introduces a Colombian peso-pegged token on the Polygon network.
Bitcoin's recent surge in value may be attributed to a $10 billion investment by whales, Robinhood's involvement in a $3 billion Bitcoin purchase, and JPMorgan analysts predicting an end to the crypto bear market.
Robinhood is reportedly no longer conducting cryptocurrency business with market maker Jump Trading, as the latter has withdrawn from the US market due to regulatory crackdowns.
Robinhood expands its crypto wallet to include support for bitcoin and dogecoin, allowing users to send and receive these cryptocurrencies in addition to ether and tokens built on the Ethereum blockchain. They also introduce swap features for select users to trade ether for over 200 different assets.
Bitcoin, the first leading cryptocurrency, has been the top-performing asset over the past decade and offers a hedge against inflation and potential diversification benefits for portfolios.
Robinhood has entered into a $605.7 million share repurchase agreement with the United States Marshal Service to buy back stock from Sam Bankman-Fried's Emergent Fidelity Technologies.
Deep-pocketed Bitcoin holders have accumulated over $1 billion worth of BTC in the last two weeks, while the number of investors holding at least 10 BTC has reached a three-year high; the growth in market caps of the top six stablecoins suggests a potential reversal in the crypto market.
Only 22 out of the nearly half a billion people invested in cryptocurrency have become billionaires through their investments, with Bitcoin being the most common asset held by crypto billionaires, according to a report by Henley & Partners. The report also revealed that the US ranked third in terms of public adoption of cryptocurrencies, behind the UAE and Singapore.
Grayscale Bitcoin Trust, the second-largest BTC entity globally, holds over $16 billion worth of Bitcoin across more than 1,750 addresses, according to blockchain analytics firm Arkham Intelligence.