- Robinhood has decided not to hold Bitcoin as an investment.
- The company’s cryptocurrency division reports a 165% revenue surge despite Bitcoin market volatility.
As a seasoned observer of the financial markets, I find Robinhood’s stance on Bitcoin intriguing. While it’s understandable that a company like Robinhood, with its focus on democratizing finance, might approach digital assets cautiously due to their volatility and regulatory uncertainties, I can’t help but feel a tinge of disappointment.
With more worldwide corporations adopting Bitcoin (BTC) as a key investment strategy, certain prominent entities are still cautious. Among these hesitant companies is Robinhood, an American provider of financial services.
Robinhood CEO says no to Bitcoin
In a conversation with Anthony Pompliano, Robinhood CEO Vladimir Tenev clarified that their trading platform does not intend to keep Bitcoin as an asset in its investment portfolio.
Robinhood’s cautious approach stands out starkly against the rising wave of institutional acceptance, sparking speculation about their strategic plans for the rapidly changing crypto marketplace.
Within the company, there have been occasional suggestions about owning Bitcoin, which shows our increasing interest and engagement in the world of cryptocurrencies, as acknowledged by Tenev.
In addition to keeping just enough funds for clients’ trades, Tenev elaborated, he emphasized that the company primarily focuses on other aspects.
1) “It’s possible, but we haven’t taken that step yet. We don’t work as investment managers at this time.
It seems that although Bitcoin (BTC) is still a possibility, there are some factors that significantly shape Robinhood’s strategy in dealing with it.
Since it’s already accounted for in our financial records, performing this task is necessary and justified.
In other words, although companies such as MicroStrategy and Metaplanet continue to intensify their involvement with Bitcoin, Robinhood appears to have reduced its participation somewhat, but not completely.
This could be because of the unstable characteristics of cryptocurrencies, or it could be a distinctive expansion approach that the company is employing, similar to how Microsoft has done in the past.
In other words, considering the risks associated with digital assets, Robinhood could have chosen a different approach.
Impact on the stock price
As I analyze the market trends, it appears that Bitcoin, the so-called ‘king coin’, is experiencing a slight dip. Currently, its price stands at approximately $94,038.28, reflecting a 1.92% decrease over the last 24 hours.
On the other hand, Robinhood’s shares saw a 2.17% dip, closing at $37.5o, at the time of writing.
Regardless, the stock continues to hold a common forecasted price of $38.19, varying from an optimistic prediction of $55 by Morgan Stanley to a more cautious outlook of $11 by Barclays.
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2024-12-24 23:03