Robinhood has announced at the Bitcoin 2022 conference currently underway in Miami, FL that crypto wallet availability is now live for 2 million of its “eligible” customers, reported CoinDesk. In addition, Robinhood will be adding the ability to transact bitcoin on the Lightning Network, the low-cost settlement layer for Bitcoin that is more energy-efficient and faster.
The popular retail trader app has reported that over 10 million Robinhood users traded crypto coins at the beginning of last year and created $48 million in revenue for the company last quarter. It’s an explosion of growth that Robinhood is looking to continue as it aims for better connectivity to the crypto economy for its users.
“Wallets are just the first step we’re taking to connect our customers to the broader crypto ecosystem,” said CEO Vlad Tenev in a press statement.
The wallets will have limitations, however, and will not be available in New York, Hawaii, and Nevada due to state regulations. The wallets will not be able to connect to Ethereum-based services, will be unable to accept ERC-20 tokens, NFTs, or any digital asset not currently on Robinhood’s trade list, and will also not accept tokens generated by airdrops and forks.
Robinhood is currently researching and investing in the technology that would allow staking for customers, an attractive yield-earning feature of some cryptocurrency networks, but it isn’t available for now. Outbound transfers of cryptocurrencies currently on the Robinhood app to wallets that allow for staking will only be charged the estimated gas fees and no withdrawal fees, Robinhood has said.
For users looking to transfer crypto out, there is a $5,000 daily cap on anything outbound, and crypto that is freshly acquired will remain where it is until the settlement of the transaction is complete. In addition, users wishing to create and access wallets must supply identification and pass an identity check as well as allow two-factor authentication.
BLOK Invests in Crypto’s Growth
For investors who want access to the growing crypto space with diversified exposure, the Amplify Transformational Data Sharing ETF (BLOK) can be a great solution. BLOK invests in Robinhood and companies within crypto that continue to grow and capitalize on the potential of blockchain.
BLOK currently has $1 billion in AUM, is actively managed, and invests in companies directly involved in developing and using blockchain technology. BLOK was also the first blockchain ETF approved by the SEC and launched in 2018.
The fund invests in companies partnered with or directly investing in companies utilizing and developing blockchain technologies. However, the fund does not invest directly in blockchain technology or cryptocurrencies.
BLOK spreads its holdings across the size spectrum, investing in all market caps. As of the end of December, top allocations within the blockchain industry included transactional at 38.0%, crypto miners at 23.0%, and venture at 11%. BLOK invests across the blockchain landscape, in miners, exchanges, and developers.
BLOK has an expense ratio of 0.71% and currently has 47 holdings.
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