Bitcoin ETFs Account for 5% of Cryptocurrency Trading Activity on Robinhood

Last updated:
February 14, 2024 00:43 EST
| 1 min read

Robinhood disclosed that recently launched spot Bitcoin ETFs account for approximately 5% of its cryptocurrency trading volume.

The bulk of activity, 95%, remains within Robinhood’s native crypto trading sector.

During the earnings teleconference, CFO Jason Warnick noted a “nice interest in the ETFs” and considers them a beneficial addition.

He believes that having a diversity of offerings for clientele enhances overall interest in cryptocurrency and contributes liquidity to the market. Warnick expressed contentment with the performance of Bitcoin ETFs.

The SEC sanctioned 11 spot Bitcoin ETFs in January, broadening access to the premier cryptocurrency on Wall Street and further afield. Robinhood promptly made all 11 ETFs available to its users.

Though a minority of traders transitioned from direct cryptocurrency transactions to ETFs, the overall response was overwhelmingly in favor of maintaining existing spot trading operations. The inclusion of ETFs in Robinhood’s retirement accounts also contributed to their adoption.

Robinhood’s Q4 Revenues Soar to $471M, Surpassing Projections

In Q4, Robinhood’s transaction-based revenue saw a leap of 8% to $200 million, with cryptocurrency driving a 10% rise to $43 million in revenue.

Overall, the quarter’s revenue climbed by 24% to $471 million, and earnings per share were recorded at $0.03, outpacing analyst predictions of $457 million in revenue and a loss estimation of $0.01 per share.

JUST IN:

🔹 Q4 crypto revenue of Robinhood went up by 10%, elevating its stock price by 15%. Crypto trade volume enjoyed a 89% increase, hinting at promising outcomes for Coinbase.
🔸 With plans to grow its global reach, Robinhood has witnessed a robust start in 2024.

— House of Chimera (@HouseofChimera) February 14, 2024

An earnings presentation highlighted an 89% surge in notional crypto trade volume, fueled by heightened user engagement.

Robinhood Makes Strides in International Expansion

Robinhood made its first foray into the international market, beginning with stock trade services in the UK and then rolling out crypto trade to the EU, offering over 25 digital currencies.

CEO Vlad Tenev acknowledged that the app’s extension has attracted a substantial international user base.

With significant investment flowing into expanding its crypto operations both in the EU and domestically, Tenev indicated that numerous enhancements are on the horizon.