The community discovered an unknown wallet that accumulated $3 billion in Bitcoin over the past three months, leading to widespread speculation about who the owner might be.
A Bitcoin wallet, which swiftly became the world's third-largest holder in just over three months, has been identified. BitInfoCharts data reveals that the wallet first received #Bitcoin on March 8. Within roughly three months, it amassed an impressive 118,000 BTC, valued at $3.08 billion at today's rates.
The swift and substantial gathering of Bitcoin in one wallet prompted much speculation. Some believed it was probably a cryptocurrency exchange shifting assets. Meanwhile, a few on Crypto Twitter floated a bolder idea, pointing at BlackRock as the potential owner.
Mystery solved
As the blockchain analysis firm Arkham Intelligence has identified the wallet to be associated with #Robinhood: Jump Trading Custody.
According to BitInfoCharts, the leading Bitcoin wallets globally are held by Binance and Bitfinex, known as their cold wallets. Robinhood's wallet ranks third, with another Binance cold wallet trailing right behind in the fourth position.
What does this mean for markets?
Should Robinhood be verified as the holder of the 118,000 BTC, it would have a ripple effect in the crypto world. While traditionally, most large Bitcoin addresses have been tied to crypto-centric exchanges, Robinhood, with its focus on equities and options, would be setting a new trend.
Reviewing Robinhood's recent 10-Q filing, they reported holding $4.24 billion in Bitcoin. With Bitcoin's price close to $30,500 as of June 30, this translates to roughly 139,016 BTC – corroborating claims about Robinhood's significant crypto possession.
If Robinhood does own this notable Bitcoin address, it underscores a pivotal insight: Bitcoin's success isn't solely contingent on major institutional players. Despite earlier assertions that Bitcoin's trajectory depended on big-name investors or firms like Tesla and Block Inc., recent disclosures indicate that giants like Apple and Alphabet have yet to invest in Bitcoin.
By June 2023, Robinhood reportedly boasted 23.2 million active users. If merely a tenth of them held Bitcoin, an average investment of around $1,828 per user would account for the declared $4.24 billion in Bitcoin assets. This suggests that everyday individuals, like those on Robinhood, are crucial players in the evolving cryptocurrency narrative.
#Robinhood users are famously engaged in speculative trading, with significant investments in meme stocks such as AMC, GameStop, and Bed Bath & Beyond. They also have a substantial stake in #Dogecoin , valued at a whopping $2.63 billion.
This speculative nature of trading raises concerns about their approach to Bitcoin. If these users bought Bitcoin expecting the approval of a U.S. spot-based ETF, a delay in this approval or a drop in Bitcoin's price might lead to widespread selling.
Furthermore, while it's remote, there's a risk of U.S. government intervention. Drawing a parallel, the 1933 Executive Order 6102 required private gold owners to exchange their holdings for paper currency. While it's unlikely for a similar directive to target Bitcoin, any action from the U.S. authorities could jeopardize these Bitcoin holdings.
Moreover, if U.S. legal bodies or the IRS were to freeze these assets for investigations related to tax or other concerns, the vast amount of Bitcoin on Robinhood intensifies the potential repercussions. The sheer size of Robinhood's holdings means that any such actions could significantly impact the broader market.