Robinhood has witnessed an impressive 400% increase in crypto trading volume in the fourth quarter, reaching $70 billion. This surge in activity comes as retail investors return to digital assets amidst Bitcoin’s rally past $100,000 and renewed enthusiasm for the broader crypto market.
The brokerage’s total transaction-based revenue has more than doubled year-over-year, reaching $672 million. Crypto trading revenue has played a significant role in this growth, skyrocketing by 700% to $358 million, while equity trading revenue rose by 144% to $61 million.
In the fourth quarter, Robinhood reported a total revenue of $1.01 billion. The firm’s diluted earnings per share in the fourth quarter also saw a significant increase, rising to $1.01 from $0.03 per share a year earlier.
Crypto resurgence after a slow year
Throughout most of 2024, Robinhood’s crypto trading activity had been on a decline, with volume dropping from $36 billion in the first quarter to $14.4 billion in the third quarter.
The sharp rebound in the fourth quarter aligns with a broader market resurgence driven by Bitcoin’s rapid price appreciation, increased institutional adoption, and speculation surrounding regulatory clarity in the US.
Robinhood attributed its strong quarter not only to market momentum but also to product expansion. The company added seven new cryptocurrencies to its US platform, introduced Ethereum staking for European users, and announced plans to launch futures trading for Bitcoin, oil, and gold.
While the firm has not committed to holding Bitcoin as a corporate reserve, CEO Vlad Tenev mentioned internal discussions on the matter in December.
Advocating for clearer regulations
Tenev, a staunch supporter of crypto adoption, has been advocating for clearer regulatory guidelines in the US. In a recent op-ed in the Washington Post, he urged the SEC to establish clear rules allowing early-stage companies to tokenize equity.
He emphasized the need for regulatory reforms to democratize access to private market investments through tokenization. Tenev proposed that by tokenizing private equity via blockchain technology, retail investors could gain early access to high-growth companies, reducing barriers while maintaining necessary disclosures and investor protections.
Aside from its focus on crypto, Robinhood has been expanding its product offerings aggressively. In 2024, the company launched a new platform for active traders, introduced the Robinhood Gold Card, and expanded its financial services suite in the UK and EU.
