Crypto trading volume on the brokerage dropped 55 percent in Q3.
Demand for equities and options remained flat last month.
Crypto trading on Robinhood is gaining steam again as the American brokerage revealed a volume surge of 75 percent month-over-month in November. The figure followed a series of consecutive quarters (Q2 and Q3) during which Robinhood experienced a plunge in crypto trading.
Crypto Trading Picks Up on Robinhood
According to the latest Form 8-K filing, customers' net deposits on the platform surged to $1.4 billion last month. It highlighted that while the notional crypto trading volume increased last month, the figures from equities and options contracts remained flat.
Robinhood reported a decline of 55 percent in revenue from cryptocurrency trading activities in the third quarter of 2023. Then, it generated only $23 million from cryptocurrency trading compared to $31 million in the second quarter, when the figure fell 26 percent.
The broker's overall transaction-based revenue, including equities and options contracts, for the three months between July and September, came in at $185 million, a decline of 11 percent. While the revenue from equities and crypto trading decreased, demand for options contracts remained unchanged.
A Disrupter in the Crypto Trading Market
The number of crypto trading pairs Robinhood offers is much less than that of other dedicated cryptocurrency exchanges. However, the platform stood out with its offerings of trending meme tokens. It also claims to offer lower trading costs when compared to its competitors like Coinbse, Crypto.com, and Kraken.
Robinhood released the update when the prices of Bitcoin and other top cryptocurrencies, like Ethereum, have been rallying higher. Bitcoin recently crossed $42,000, its peak in the last 19 months, but corrected from that level to trade at around $41,500 as of press time.
"You're starting to see retail investors wake up to certain segments of the rally, and in crypto activity, you're seeing a groundswell," Robinhood's CEO, Vlad Tenev, told Yahoo Finance recently. "What tends to happen is, as we've seen in the past, as the price of Bitcoin approaches all-time highs, the media coverage and intensity increases."
Robinhood's publicly traded share price also shows optimism with the increased trading activity. Robinhood shares gained more than 14 percent in the last five trading sessions, with a year-to-date return of over 18 percent.
Meanwhile, Robinhood is now eying on international expansions. It aims to launch services in the United Kingdom next year, with additional expansion of crypto trading operations in the European Union in the pipeline.
Crypto trading on Robinhood is gaining steam again as the American brokerage revealed a volume surge of 75 percent month-over-month in November. The figure followed a series of consecutive quarters (Q2 and Q3) during which Robinhood experienced a plunge in crypto trading.
Crypto Trading Picks Up on Robinhood
According to the latest Form 8-K filing, customers' net deposits on the platform surged to $1.4 billion last month. It highlighted that while the notional crypto trading volume increased last month, the figures from equities and options contracts remained flat.
Robinhood reported a decline of 55 percent in revenue from cryptocurrency trading activities in the third quarter of 2023. Then, it generated only $23 million from cryptocurrency trading compared to $31 million in the second quarter, when the figure fell 26 percent.
The broker's overall transaction-based revenue, including equities and options contracts, for the three months between July and September, came in at $185 million, a decline of 11 percent. While the revenue from equities and crypto trading decreased, demand for options contracts remained unchanged.
A Disrupter in the Crypto Trading Market
The number of crypto trading pairs Robinhood offers is much less than that of other dedicated cryptocurrency exchanges. However, the platform stood out with its offerings of trending meme tokens. It also claims to offer lower trading costs when compared to its competitors like Coinbse, Crypto.com, and Kraken.
Robinhood released the update when the prices of Bitcoin and other top cryptocurrencies, like Ethereum, have been rallying higher. Bitcoin recently crossed $42,000, its peak in the last 19 months, but corrected from that level to trade at around $41,500 as of press time.
"You're starting to see retail investors wake up to certain segments of the rally, and in crypto activity, you're seeing a groundswell," Robinhood's CEO, Vlad Tenev, told Yahoo Finance recently. "What tends to happen is, as we've seen in the past, as the price of Bitcoin approaches all-time highs, the media coverage and intensity increases."
Robinhood's publicly traded share price also shows optimism with the increased trading activity. Robinhood shares gained more than 14 percent in the last five trading sessions, with a year-to-date return of over 18 percent.
Meanwhile, Robinhood is now eying on international expansions. It aims to launch services in the United Kingdom next year, with additional expansion of crypto trading operations in the European Union in the pipeline.
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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