Robinhood reported a staggering 400% surge in crypto trading volume in the fourth quarter, reaching $70 billion, as retail investors flocked back to digital assets amid Bitcoin’s (BTC) rally past $100,000 and renewed enthusiasm for the broader crypto market.
The brokerage’s total transaction-based revenue more than doubled year-over-year, climbing 200% to $672 million. The crypto trading revenue dominated this growth. It soared 700% to $358, while the equity trading revenue grew 144% to $60 million.
Robinhood’s total fourth-quarter revenue reached $1.01 billion. The company reported fourth-quarter earnings of $0.03 per shares, which was a dramatic increase.
Crypto comes back after a sluggish Year
Robinhood’s cryptocurrency trading activity has steadily decreased through much of 2024. Volume dropped from $36 Billion in the first to only $14.4 Billion in the third quarter.
The sharp rebound in the fourth quarter coincided with a broader market resurgence, fueled by Bitcoin’s rapid price appreciation, increased institutional adoption, and speculation around regulatory clarity in the US.
Robinhood also credited its successful quarter to the expansion of their product line. Robinhood added seven new cryptos to its US platform. It also introduced Ethereum (ETH), staking, for European users. The company announced that it would launch futures contracts for Bitcoin, gold, oil and other commodities.
Although Vlad Tenev, the CEO of the firm, acknowledged that internal discussion on this matter took place in December.
Push for clearer regulation
Tenev has been a strong advocate for the adoption of cryptocurrency in America. He is also a supporter of clearer regulations. In an op-ed published in the Washington Post last month, Tenev urged for clearer rules that would allow companies at early stages to tokenize equity.
He called for reforms in the regulatory system to allow a broader range of investors to access private investments. He stated that many companies with high growth are opting to stay private. This limits investment opportunities for a small group of wealthy individuals.
Tenev claimed that tokenizing private equity through blockchain technology would allow retail investors to gain early entry into these companies while maintaining the necessary disclosures.
Robinhood is aggressively expanding beyond crypto. The company introduced the Robinhood Gold Card in 2024 and launched a platform for active traders. It also expanded the financial services it offers to the UK and EU.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
