In November, the volume of digital assets and crypto trading on the Robinhood trading platform increased by 75% annually as opposed to levels in October 2023.
Robinhood disclosed on December 4 in a Form 8-K filing with the United States Securities and Exchange Commission (SEC) that “November Crypto Notional Trading Volumes were approximately 75% higher than October 2023 levels.”
However, this did not materialize into volumes of trading in options and equity contracts, which were essentially unchanged from October.
The prosperous month represents a reversal for Robinhood, whose Q3 results filing disclosed a 55% decline in notional volumes of cryptocurrencies compared to the same period last year.
Consequently, the company’s revenue for the third quarter was $467 million, which was lower than what analysts had anticipated. The primary contributor to the 11% year-on-year decline in transaction-based revenues to $185 million in 2022 was the decline in cryptocurrency volumes.
Robinhood may be anticipating a more lucrative fourth quarter, considering the recent surge in the cryptocurrency market capitalization, which has increased by 40% to $1.6 trillion in the last two months.
During an earnings call with investors in November, Vlad Tenev, co-founder and CEO of Robinhood, projected that the platform’s annual revenue could reach “nine figures” at some point.
Tenev stated in an interview with Yahoo Finance on December 4 that retail investors were regaining interest in cryptocurrencies.
“You’re starting to see retail investors wake up to certain segments of the rally, and in crypto activity, you’re seeing a groundswell.”
“As we have seen in the past, media coverage and intensity tend to increase as the price of Bitcoin approaches all-time highs,” he said, adding, “I believe that also plays a role.”
The share price of Robinhood has increased by 18% since the start of 2023. However, the company’s stock has declined since mid-July, after its peak of slightly more than $13 in 2023. When writing, Robinhood stock was trading at $9.95 in after-hours trading, gaining 2.5% daily.
Robinhood anticipates commencing futures trading in United Kingdom markets in 2024, contingent upon regulatory approval and its planned introduction of equities.
It was reported in August that Robinhood had amassed 118,000 BTC, valued at approximately $3 billion.
