The post Robinhood Reports 112% Jump in Crypto Trading Volume, but There’s a Catch appeared on BitcoinEthereumNews.com.

Robinhood has reported a 112% year-over-year increase in cryptocurrency trading volume, reaching $14.4 billion in the third quarter of 2024. However, this surge comes amid a decline in trading activity compared to earlier in the year, with volumes peaking at $36 billion in the first quarter and dropping to $21.5 billion in the second quarter. Results Fall Short of Analyst Expectations Despite this slowdown in momentum in 2024, the trading platform experienced growth in its transaction-based revenue. The report indicates that income increased by 72% compared to the previous year, reaching $319 million. Of this, cryptocurrency trading accounted for $61 million, representing a 165% increase compared to last year. However, this figure was down from the $81 million generated in the previous quarter. Overall, the company reported a net income of $150 million and total revenue of $637 million for the third quarter. However, these results fell short of analysts’ expectations. The reported earnings per share (EPS) of $0.17 fell short of the Zacks Consensus Estimate of $0.18, while total revenue was 3.6% below the anticipated $661.2 million. Other parts of Robinhood’s business also showed strong performance. Options trading revenues surged to $202 million, up 63% from the same period last year, and equities trading brought in $37 million, reflecting a 37% increase. The company also revealed a rise in its Assets Under Custody (AUC). The metric grew by 76% year-over-year to $152.2 billion, fueled by net deposits from users and increased valuations of stocks and cryptocurrencies. Robinhood Executives Comment on Q3 Results Vlad Tenev, CEO and co-founder of Robinhood expressed his pride in the results, stating that they were a testament to how well the company’s “product engine is humming.” Further, he highlighted recent initiatives such as the launch of Robinhood Legend, a new desktop platform, and the upcoming…

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Filed under: News - @ November 3, 2024 12:17 pm