Key Insights
- Robinhood’s crypto transaction-based revenues grew 161% year-over-year to $81 million in Q2 2023, outpacing equity trading revenues.
- The company’s digital asset “notional” trading volume surged 137% to $21.5 billion, though down from $36 billion in Q1.
NEW YORK (MarketsXplora) – Robinhood, the commission-free brokerage platform, has reported a substantial surge in cryptocurrency-related revenues and trading volumes during the second quarter of 2023.
According to the company’s earnings report released on Wednesday, Robinhood’s crypto transaction-based revenues grew by 161% year-over-year, reaching $81 million. This figure was double the revenues generated from equities transactions in the same period.
“The trading platform’s largest revenue stream was options, which generated $327 million in the quarter,” the report stated.
Robinhood’s digital asset “notional” trading volume also saw a significant increase of 137% compared to the same period last year, reaching $21.5 billion. However, this figure was down significantly from the $36 billion recorded in the first quarter of 2023, when top cryptocurrencies like Bitcoin and Ether were trading at lower levels.
The company’s recent acquisition of the cryptocurrency trading platform Bitstamp could provide a further boost to its crypto-related business. Robinhood described Bitstamp as “a globally-scaled crypto exchange, with over 50 active licenses and registrations internationally and customers across the EU, UK, US and Asia.”
Despite the impressive crypto-related performance, Robinhood’s overall user growth remained modest, with the number of monthly active users increasing by 9% to 11.8 million compared to the same period in 2023.
The surge in Robinhood’s crypto revenues and trading volumes underscores the continued demand for digital assets among retail investors, even as the broader cryptocurrency market has experienced fluctuations in recent quarters.
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