Arkham: Robinhood is the fifth largest Ethereum holder

Blockchain analytics firm Arkham Intelligence has identified Robinhood as the fifth-largest holder of ethereum (ETH), holding around $2.54 billion, as the exchange's cryptocurrency trading volumes reportedly declined.

Data shows that Robinhood, known primarily for its stock trading services, is not only a significant player in the Bitcoin (BTC) space but also holds a significant amount of Ethereum (ETH).

According to Arkham, Robinhood’s wallet ranks fifth in the world, holding about $2.54 billion worth of ETH, a news that adds another layer to the platform’s massive crypto footprint. The company was previously considered the third largest holder of BTC, holding approximately 122,076 BTC worth $3.3 billion.

To clarify, Arkham further stated that assets in Robinhood’s crypto wallets are custodial in nature, meaning they are essentially held on behalf of users. In addition to ETH and BTC, Robinhood also holds various other coins in its wallet.

For example, they hold 34.1 trillion Shiba Inu (SHIB) coins, currently worth approximately $277.8 million. Additionally, the wallet contains approximately 4.9 million Chainlink ( LINK ) tokens, worth nearly $29.7 million, and 2.6 million Avalanche ( AVAX ) tokens, worth nearly $29.6 million.

Just as Robinhood is grappling with declining cryptocurrency trading activity. They recently revealed that their cryptocurrency trading revenue dropped from $38 million in the first quarter of 2023 to $31 million in the second quarter of 2023.

This shrinkage isn't just a Robinhood problem, it's a Robinhood problem. It reflects broader trends in the broader cryptocurrency market. Against this backdrop, some may be wondering whether Robinhood's foray into cryptocurrency is as solid a move as it initially seemed.

However, Robinhood appears to be responding positively to market demand. On Wednesday, Aug. 30, the company announced the expansion of its wallet services to include “escrow, send and receive support” for BTC and Dogecoin (DOGE), as well as ETH swaps. This feature was introduced in response to customer demand for more functionality and asset support within the Robinhood platform.

Robinhood's self-hosted wallet originally launched in March, supports ETH and Polygon (MATIC) networks, and includes a variety of tokens including COMP, MATIC, SHIB, SOL, UNI, and USDC stablecoins. The company’s efforts to expand its cryptocurrency services reflect a strategic move to stay relevant in the digital asset space despite challenges with its cryptocurrency trading volumes.