Crypto-friendly trading platform Robinhood has reported a 75% month-on-month increase in digital asset trading volume in November.
In an 8-K filing to the Securities and Exchange Commission on Dec. 4, Robinhood noted that “November Crypto Notional Trading Volumes were roughly 75% above October 2023 levels.”
The activity, however, didn’t translate to equity and options contract trading volumes, which were mostly flat compared to October.
The bumper month marks a reversal for Robinhood, which revealed a 55% decrease in cryptocurrency notional volumes over the year in its Q3 results filing.
As a result, its Q3 revenue came in below analyst estimates for the quarter at $467 million. Transaction-based revenues declined by 11% year-on-year to $185 million, largely due to the fall in crypto volumes over 2022.
Robinhood could be eyeing a more profitable fourth quarter in light of the recent crypto market rally, which has seen total capitalization surge 40% to $1.6 trillion over the past two months.
Robinhood co-founder and CEO Vlad Tenev told investors in a November earnings call that the platform could eventually reel “nine figures” in annual revenue.
Speaking to Yahoo Finance on Dec. 4, Tenev said that retail investors were starting to show interest in crypto again.
“You’re starting to see retail investors wake up to certain segments of the rally, and in crypto activity, you’re seeing a groundswell,”
“What tends to happen is, as we’ve seen in the past, as the price of Bitcoin approaches all-time highs, the media coverage and intensity increases,” he said before adding, “I think that plays a role also.”
Related: Robinhood to roll out US stock trading in British market
HOOD prices have gained this year, up just 18% since the beginning of 2023. The company stock however has been down-trending since mid-July after reaching a 2023 high of just over $13. HOOD was priced at $9.95 in after-hours trading after gaining 2.5% daily.
In addition to launching equities to U.K. markets, Robinhood plans to launch futures trading in 2024, pending regulatory approval.
In August, Cointelegraph reported that Robinhood had accumulated 118,000 BTC worth around $3 billion at the time.
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