As the crypto sector experiences the beginning of what appears as a bull run, trading platform Robinhood has experienced a significant increase in digital asset trading volume.
According to a recent filing, the platform saw a 75% month-on-month rise in crypto trading in November. This surge contrasts with the platform’s equity and options trading volumes, which remained relatively unchanged from October.
Robinhood’s increased trading activity in digital assets highlights the growing investor interest in cryptocurrencies, distinguishing it from traditional financial markets.
The announcement follows Robinhood’s recent decision to expand its operations to the U.K., marking the company’s third attempt at international growth. CEO Vlad Tenev, in a statement to CNBC, expressed confidence in this venture, saying he is “confident we’ll be able to serve the customers here tightly.”
Robinhood’s crypto surge
Robinhood’s latest financial disclosure, a Form 8-K filed with the SEC, detailed the company’s performance. The report indicated that November’s crypto trading volumes significantly exceeded those in October 2023. This marks a reversal from the 55% year-over-year decline in cryptocurrency trading volumes reported in the third quarter.
The recent rally in the crypto market, which saw a 40% increase in total market capitalization to $1.6 trillion over two months, may contribute to a more profitable fourth quarter for Robinhood.
In a November earnings call, CEO Vlad Tenev suggested the potential for substantial annual revenue from the platform. He anticipated Robinhood to reach nine figures in yearly income.
Robinhood to enter UK market
Robinhood is currently gearing up for another attempt at launching in the U.K, which it has tried twice before.
The trading platform is making strategic moves to tailor its offerings to the new market. The U.K. platform will initially feature a selection of 6,000 U.S. stocks and the convenience of 24-hour trading five days a week. This feature is already available in the U.S. and allows for trading activities beyond the standard market hours.
However, the initial U.K. launch will not include local stocks or options and other derivatives.
Robinhood plans to expand its product offerings gradually, with the addition of futures trading in 2024, subject to regulatory approval.
The company’s stock performance has been a mixed bag. Since the beginning of 2023, Robinhood’s stock prices have seen an 18% increase. However, the stock has experienced a downward trend since mid-July, following a peak of just over $13. The stock closed 4 December at $9.35, up 2% in the past 24 hours, after the disclosure of its crypto trading income.
