Robinhood and Bitcoin Investment Plans

Cryptocurrency is becoming increasingly significant for Robinhood, but CEO Vladimir Tenev stated they have no plans to hold Bitcoin for investment purposes during a recent interview.

Tenev mentioned that the idea of holding Bitcoin occasionally arises due to Robinhood's growing interest in cryptocurrencies, but apart from meeting trading needs for clients, there are no current plans to acquire BTC as an investment.

> "We wouldn’t rule it out. We haven’t done it thus far," Tenev said in the interview with Anthony Pompliano. "Not in the business of being an investment manager."

Despite not mirroring companies like MicroStrategy and Tesla, who hold Bitcoin on their balance sheets, Tenev highlighted that Robinhood’s stock price is already correlated with Bitcoin even without holding it.

Robinhood's stock (ticker: HOOD) has surged 202% this year, whereas Bitcoin has returned 110% year-to-date.

Tenev believes that holding Bitcoin could complicate the perception of Robinhood, potentially leading investors to view it as a "quasi, bitcoin-holding play."

Robinhood as the Top Crypto Trade

In November, Bernstein analysts identified Robinhood as the top “crypto deregulation trade” following Donald Trump's election victory. They anticipate that Robinhood’s crypto revenues will increase by 20% by the end of 2025, contributing to 38% of total revenues.

Thus far, Robinhood has been conservative in offering crypto options, with fewer digital assets than competitors like Coinbase and Kraken. Expectations suggest changes are possible during Trump’s presidency.

Additionally, Robinhood is set to finalize its acquisition of crypto exchange Bitstamp in the first half of 2025.