Zero-fee stock trading app Robinhood says it will let users trade bitcoin and ether starting in February using its Robinhood Crypto platform
TechCrunchJosh Constine
Context & Ripple Effects
Robinhood's playbook has been to strip fees from one asset class at a time: it raised $50M from NEA in 2015 to take zero-fee stock trading global, then opened that trading engine to third-party apps like StockTwits via a platform play. By April 2017 it was completing a round led by DST Global at a $1.3B valuation on the strength of that distribution.
Adding bitcoin and ether through Robinhood Crypto extends the same wedge into cryptocurrency, where incumbent exchanges charge explicit trading fees. The move matters because it puts digital assets inside an app whose users already fund accounts for equities — no new onboarding required.
First-order effects
Robinhood's existing stock-trading base gains direct bitcoin and ether exposure starting in February, making Robinhood Crypto a second revenue line alongside equities.
Fee-charging crypto exchanges now compete against a zero-fee entrant whose customer acquisition cost is near zero because the audience is already installed.
Incumbent exchanges face pressure to cut or restructure retail fees, since the free-trading expectation Robinhood normalized in equities transfers directly to crypto.
Third-order effects
If the pattern holds, retail brokers consolidate into multi-asset platforms where the durable moat is licenses and account relationships, not pricing — a shift visible in Robinhood's later mix, where event-contracts revenue of $156M overtook both stock and crypto lines even as crypto revenue fell 38% year over year.
Asset-class boundaries blur: once one app trades stocks, crypto, and event contracts, regulators face pressure toward unified oversight of retail trading platforms rather than siloed per-asset regimes.
The trend: Retail brokerages are evolving from single-asset zero-fee apps into licensed multi-asset platforms, with regulatory approvals — not trading fees — setting the pace and geography of expansion.
We display the estimated price so customers will have full transparency into what they will be buying / selling crypto at ... any deviation from the estimated price will be due to market fluctuations and not something that Robinhood profits from
@cnbc
@cnbc on x
Robinhood will launch bitcoin and ethereum trading in 5 states in February http://www.cnbc.com/... via @cnbctech http://twitter.com/...
@joshconstine
Josh Constine on x
Robinhood co-founder denies VC Bill Gurley's assertion that it actually hides fees rather than not charging them for crypto trades http://twitter.com/...
@robinhoodapp
Robinhood on x
Stocks, ETFs, options, and cryptocurrencies, all on the Robinhood platform. http://blog.robinhood.com/...
@waynevaughan
Wayne Vaughan on x
Non Bitcoin companies are in the Bitcoin exchange business. 2012 MtGox 2013 Cryptsy 2015 Coinbase 2017 Square 2018 Robinhood Progress. http://twitter.com/...
@mdudas
Mike Dudas on x
Robinhood sells their order flow. It's an indisputable fact that they themselves report. Not sure why their founder would deny that... http://d2ue93q3u507c2.cloudfront.net/ ... http://twitter.com/...
@pt
Parker on x
Makes sense for the challenger to launch a bunch of tokens / cut fees, especially if free stocks trades isn't working so well. Lots to win & not much to lose. But if they get caught up in token scams & the incumbent is disciplined, . High-stakes bets being placed all around! ht…
@jmj
Jeff Morris Jr on x
Robinhood announcement is huge for crypto: 1. Competition for Coinbase. As Robinhood releases new coins, puts pressure on Coinbase to do the same. 2. Millennials will see little difference between public equities & crypto. 3. New audience will be addicted to the crypto drug.
@elementus_io
Elementus on x
Robinhood adds zero-fee cryptocurrency, “We're planning to operate this business on a break-even basis” http://techcrunch.com/... Coinbase may want to rethink those 1.5%-4% fees
@joshconstine
Josh Constine on x
Robinhood is undercutting Coinbase and giving away crypto trading as a loss leader so it can earn interest on your cash & sell you a subscription for borrowing http://tcrn.ch/2nc9Mkf
@bgurley
Bill Gurley on x
Isn't this 100% about embedding the fees in either the bid-ask spread, currency exchange or both? http://twitter.com/...
@joshconstine
Josh Constine on x
Robinhood lets you trade cryptos with no extra fee, compared to the 1.5% to 4% you pay on Coinbase. This is going to be POPULAR http://techcrunch.com/...
@joshconstine
Josh Constine on x
Stripe dropping Bitcoin as Robinhood opens up trading signals the shift in cryptocurrency from a payment tool to an investment asset http://techcrunch.com/...
@joshconstine
Josh Constine on x
“We're an established company. We can handle it.” That will either be Robinhood co-founder @vladtenev's victory statement or his famous last words about the risk of offering crypto trading http://techcrunch.com/...