If You Invested $1,000 In Robinhood When It Rolled Out Crypto Wallets, Here's How Much You'd Have Today

Over the years, commission-free trading platform Robinhood Markets Inc. HOOD has seen a significant expansion of its cryptocurrency business, aligning with the growing interest in the asset class.

What happened: After stocks and exchange-traded funds, the company dived into digital assets, formally launching cryptocurrency trading for its mobile app users in Feb. 2018.

The company’s cryptocurrency arm, Robinhood Crypto, allows users to trade in popular coins such as Bitcoin BTC/USD, Ethereum ETH/USD, Dogecoin DOGE/USD, and many more.

Since becoming a publicly traded company in 2021, Robinhood has ventured into other avenues connected to the cryptocurrency space.

It officially launched its cryptocurrency wallet to 2 million waitlisted customers in April 2022, allowing them to interact with crypto outside of the Robinhood app.

At the time, the company’s stock traded around $12.07 per share. So, if you had invested $1,000, you could have bought about 82.85 shares of Robinhood.

The stock closed at $40.81 during the last trading session, meaning that the original investment would have turned $3381.11, reflecting a return of 238% within three years.

Why It Matters: Robinhood reported a twofold surge in cryptocurrency volumes for the third quarter of 2024, which in turn helped drive cryptocurrency-related revenue by 165% year-over-year.

The firm’s Chief Financial Officer, Jason Warnick, expected an even better fourth quarter, stating that notional volumes passed the $5 billion mark in October and were set to surpass the third-quarter monthly average. Robinhood also held $19.45 billion worth of user cryptocurrencies as part of a safeguarding obligation.

CEO Vladimir Tenev said last year during an interview that the firm wasn’t keen on holding Bitcoin on its balance sheet for investment purposes as it could complicate things for their shareholders.

Photo Courtesy: Shutterstock.com

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