According to a report from CoinDesk, popular trading app Robinhood holds over $3.2 billion worth of bitcoin, making it the third-largest holder of the cryptocurrency in the world. The data, cited from Arkham Intelligence, reveals that Robinhood's bitcoin stash is held in a single wallet. The trading platform trails behind Binance and Bitfinex, which hold $6.4 billion and $4.3 billion in bitcoin, respectively.
It is worth noting that Robinhood did not provide immediate comment on this report when contacted by Insider. However, the report does mention that over a three-month period, Robinhood transferred around 118,000 bitcoins to its primary wallet from smaller wallets.
This news comes after Robinhood reported downbeat second-quarter earnings, which showed a decline of about one million in average monthly active users over the three-month stretch. Nevertheless, the company had its first profitable quarter and its retirement offerings continued to gain traction. Transaction-based revenues also declined, with cryptocurrencies, options, and equities seeing decreases of 18%, 5%, and 7%, respectively.
The price of bitcoin received a boost on Tuesday following news that a judge ruled in favor of asset manager Grayscale in its suit against the Securities and Exchange Commission (SEC) regarding converting its bitcoin trust into an ETF. Traders increased their bets on the approval of spot bitcoin ETFs by the SEC, which experts believe would positively impact the token's price.
Some strategists predict that bitcoin could reach six figures in the next year due to the halving process scheduled for April 2024. This process will cut crypto miners' rewards in half and create a scarcity effect. Joe Kelly, CEO of financial firm Unchained, wrote in a note that even a conservative post-halving increase of 250% could price bitcoin at $105,000 if it stays around $30,000 until the halving.
CoinShares data also revealed that last week saw the largest outflows from digital assets since March, with bitcoin experiencing the largest outflows totaling $149 million.