Robinhood's Crypto Surge: Millennials Stay Loyal, but Where Are Gen Z and Alphas?

In a surprising twist in the world of online trading, recent research indicates that the younger generations, Gen Z and Alphas, are not flocking to Robinhood as expected. Instead, it's the millennials, including those like myself, who continue to drive the platform's growth. As Robinhood reported a staggering $252 million in gross crypto earnings in Q1 2025, the platform's reliance on cryptocurrency trading has never been clearer. But with the youth seemingly absent, where are they putting their money, if anywhere at all?

Millennials Aging Gracefully with Robinhood

Robinhood has effectively captured the millennial market, a demographic that has grown with the platform over the years. Data suggests that these users are not just sticking around; they're thriving on the app, particularly in the realm of cryptocurrency. In the first quarter of 2025, Robinhood's crypto earnings outpaced both options and equities, making up nearly a third of their total gross earnings of $927 million. This trend underscores a significant shift towards digital assets among millennials, a cohort that appears to be in their peak earning years and increasingly comfortable with the volatility of crypto markets.

The Missing Gen Z and Alphas

Contrary to popular belief, the younger generations are not gravitating towards Robinhood. Some speculate that financial constraints might be the barrier; perhaps Gen Z and Alphas simply don't have the disposable income to invest. Others wonder if these groups are bypassing traditional and online brokerages altogether. "My gut take is that they're not doing anything," one expert mused, suggesting a potential disinterest or lack of awareness about investment opportunities. However, there's also a theory that these digital natives might be exploring more decentralized avenues, possibly engaging in on-chain transactions or even speculative trading on social platforms like TikTok.

A Big Announcement and the Hood Coin Ratio

Amid these demographic shifts, Robinhood is poised to make a significant announcement at the ECC in Cannes on Monday. As someone who will be attending, I can tell you the anticipation is palpable. The embargoed news promises to be a game-changer for the platform, and I'm excited to share more details in the Bankless Asia podcast next Tuesday. Additionally, a curious metric has started gaining traction within the industry: the Hood Coin ratio. Similar to the Bitcoin-Ether ratio, this new measure compares the performance of cryptocurrencies traded on Robinhood against other platforms, hinting at the platform's influence on crypto market dynamics.

Looking ahead, the future of Robinhood seems intertwined with its crypto offerings. As the platform continues to cater to its loyal millennial base, it must also consider strategies to attract the elusive younger generations. Whether through innovative features, educational initiatives, or simply waiting for Gen Z and Alphas to reach their financial prime, Robinhood's journey is far from over.

Experts predict that if Robinhood can successfully pivot to meet the needs of all generations, it could solidify its position not just as a trading app but as a pivotal player in the broader financial ecosystem. The big announcement at ECC might just be the first step in that direction.