Vlad Tenev, CEO of Robinhood, talked in his interview on CNBC's "Squawk Box" chat show about the company's achievements in digital assets and discussed the situation in the cryptocurrency market.
The head of Robinhood noted that the volume of cryptocurrency trading on the platform grew by 75% between October and November 2023. One of the key factors that led to the increase in digital asset trading volume, according to Tenev, is the company's expansion and consolidation in the crypto industry.
Tenev said that Robinhood is actively exploring new regional markets and implementing innovative solutions that allow the company's clients to get the most favorable terms on cryptocurrency transactions. Together, these factors have led to an increase in Robinhood's share in the market of digital assets and, as a consequence, to high indicators of trading volume.
While discussing the current situation in the cryptocurrency market, Tenev said that the current rally of digital assets led by Bitcoin can be explained by several theories, CryptoGlobe reported. Robinhood's CEO identified three main reasons for the bullish cryptocurrency market: optimism over the potential launch of a spot Bitcoin ETF in the U.S., changes in Federal Reserve policy that could lead to lower interest rates, and the perception of Bitcoin as a hedge against inflation.
At the same time, Tenev pointed out that Robinhood operates on a diversified business model. This ensures stable profits for the company, as it capitalizes not only on the cryptocurrency market but also on stocks, precious metals, and other assets.
That said, Tenev confirmed that Bitcoin is the most popular regular investment at Robinhood and also expressed his opinion that the cryptocurrency market is cyclical and similar trends that are happening now can be expected in the future.
The head of Robinhood also noted a fractional share program that allows users to invest in any asset regardless of its price, allowing for diversified portfolios without having to rely on ETFs.
In a blog post today, Robinhood announced that it is launching crypto trading in the European Union through its Robinhood Crypto app.
Robinhood Crypto gives users access to buy and sell over 25 cryptocurrencies with industry-leading security. In addition, users of the platform receive a monthly percentage of each transaction, paid in Bitcoins and deposited directly into clients' accounts. The amount of BTC paid out depends on the total trading volume in a given month.
"We believe that cryptocurrency is the financial foundation of tomorrow and plays an important role in our mission to democratize finance for everyone," said Johann Kerbrath, General Manager of Robinhood Crypto.
"That's why we're thrilled to extend cryptocurrency trading to EU users, allowing them to buy and sell their favorite tokens safely and securely. The EU has developed one of the most comprehensive crypto asset regulatory policies in the world, which is why we chose this region to solidify Robinhood Crypto's international expansion plans," he added.
Further reading: Cathie Wood sells Coinbase shares.
