Robinhood sees a huge demand for blockchain ETFs

Trading app Robinhood recently reported that the number of its users that are now holders of blockchain-related ETFs (Exchange-Traded Funds) just hit a new milestone. In fact, it has now reached a new high for 2020, and it happened earlier this week.

The data provided by Robinhood concerns three of the largest US-based ETFs, including BLCN, BLOK, and LEGR.

Details about Robinhood’s report

The new data comes as an interesting change of pace for US-based ETFs, after a significant drop that war reported two months ago, in mid-April. Back then, researcher Steven Zheng used the data from March of this year.

Now, however, an obvious rebound started taking place, and it set up a strong foundation in April, as the data suggests. Even so while the highs are the largest one seen in 2020 thus far, these figures are still not high enough for the ETFs to reach their ATH.

It should also be noted that the figures do not represent ATHs in terms of the two of the three ETF holders' number. The data for BLOK, on the other hand, indicates that the levels are returning to the same height as seen in mid-2019.

As for the number of holders, they are down by 33% (BLOK) and 45% (BLCN) from their ATHs. Only LEGR has managed to reach an ATH in terms of the number of holders. Still, there is time for the other two to catch up, especially BLOK, which is the closest one to its ATH of the two.

Lastly, when it comes to price, BLOK saw a 6% increase, while BLCN saw an 8% increase. LEGR, interestingly, went down by 6% on a YTD chart.

What caused this?

One possible explanation for this is the recent recovery of the stock market. The market participated in the global economic meltdown several months ago, when the coronavirus fears were at their highest.

However, there were a lot of recoveries that took place recently. One example is the Dow Jones, which has been moving higher and higher ever since dropping under 20,000 points in the last days of March.

Another factor might be the appreciation in Bitcoin price, which climbed up by 34% on a YTD chart.