Crypto Trading Skyrockets on Robinhood: November Volume Jumps 75%

by Arnab Shome
  • Crypto trading volume on the brokerage dropped 55 percent in Q3.
  • Demand for equities and options remained flat last month.
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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.

Movement of BTC price in the last 30 days, Source: Coinmarketcap.com
Movement of BTC price in the last 30 days, Source: Coinmarketcap.com

"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.

Movement of HOOD prices in the last 5 trading sessions
Movement of HOOD prices in the last 5 trading sessions

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.

Movement of BTC price in the last 30 days, Source: Coinmarketcap.com
Movement of BTC price in the last 30 days, Source: Coinmarketcap.com

"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.

Movement of HOOD prices in the last 5 trading sessions
Movement of HOOD prices in the last 5 trading sessions

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.

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