Robinhood is doubling down on the fasting growing part of their business $HOOD
$200m for an exchange doing an average of $196m in daily volume over the last year, with what appears to be 1.2m MAU (based off traffic) seems like a solid deal
Robinhood's notional crypto volume is climbing fast with 263% MoM growth - and at this rate I don' think its crazy to think we could see their crypto volumes eclipse equity trading volumes
Today, Bitstamp appears to have around $3bn in assets on the exchange, which would put robinhood with around ~$30bn in Assets Under Custody (AUC) following a successful acquisition (assuming AUC for crypto is relatively similar to Q1 levels given prices are about where they were 3 months ago)
Lastly, a big takeaway here is that the acquisition could potentially open up new trading pairs for robinhood users. Right now, robinhood offers trading for 36 different tokens in Europe and only 15 in the US.
Meanwhile, Bitstamp currently offers 90 different tokens. While robinhood internal compliance will likely put their own lens forward when analyzing which tokens to allow to trade on their platform, this could potentially push robinhood down the crypto rabbithole, allowing them to capturing trading volumes for the longer tail of assets. Adding additional pairs could also further boost volumes for advanced traders.
The push Robinhood is making into crypto shouldn't be ignored at the slighest. It's very realistic to think they could be a top 3 exchange by spot volume soon.
$200m for an exchange doing an average of $196m in daily volume over the last year, with what appears to be 1.2m MAU (based off traffic) seems like a solid deal
Robinhood's notional crypto volume is climbing fast with 263% MoM growth - and at this rate I don' think its crazy to think we could see their crypto volumes eclipse equity trading volumes
Today, Bitstamp appears to have around $3bn in assets on the exchange, which would put robinhood with around ~$30bn in Assets Under Custody (AUC) following a successful acquisition (assuming AUC for crypto is relatively similar to Q1 levels given prices are about where they were 3 months ago)
Lastly, a big takeaway here is that the acquisition could potentially open up new trading pairs for robinhood users. Right now, robinhood offers trading for 36 different tokens in Europe and only 15 in the US.
Meanwhile, Bitstamp currently offers 90 different tokens. While robinhood internal compliance will likely put their own lens forward when analyzing which tokens to allow to trade on their platform, this could potentially push robinhood down the crypto rabbithole, allowing them to capturing trading volumes for the longer tail of assets. Adding additional pairs could also further boost volumes for advanced traders.
The push Robinhood is making into crypto shouldn't be ignored at the slighest. It's very realistic to think they could be a top 3 exchange by spot volume soon.
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