ReutersFeb 26, 2021 04:15:24 IST
By John McCrank
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 greater 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 clients buying and selling on its platform monthly, the corporate mentioned in a weblog submit.
A Robinhood spokeswoman declined to say what number of total clients commerce cryptocurrencies by 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, similar to GameStop Corp.
Dogecoin was created largely as a satirical critique of the 2013 crypto frenzy, however can nonetheless be purchased and bought on digital foreign money 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 well-liked web meme, despatched the cryptocurrency up greater than 60%.
Robinhood at present permits clients to purchase, promote and maintain cryptocurrencies, and lately mentioned it plans to offer clients the flexibility to deposit and withdraw them for transfers to different wallets as nicely.
In January, Robinhood angered a few of its clients when it briefly disabled a characteristic on its app that allowed customers to immediately purchase crypto securities attributable to unstable market situations sparked by the GameStop buying and selling frenzy.
Robinhood is anticipated to go public this yr, with a worth of greater than $20 billion.
(Reporting by John McCrank; Modifying by Nick Zieminski)
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