Robinhood’s Cryptocurrency Trading Revenue Soars 161% in Q2

The online broker Robinhood reported $81 million in revenue from cryptocurrency trading for the April-June period. This figure marks a 161% increase compared to the second quarter of the previous year and is double the revenue generated from stock-related metrics ($40 million).

The largest source of revenue for the company remained options trading, which brought in $182 million.

Compared to the same period last year, the turnover of digital assets on the platform increased by 137%, reaching $21.5 billion.

Relative to January-March, the indicator fell by 40%. The broker attributed the decline to a decrease in the number of monthly active users due to worsening market conditions in the cryptocurrency sector.

This resulted in a quarter-on-quarter reduction in the total number of transactions (by 27%) and the average volume of assets involved in operations (by 18%).

The cryptocurrency-related AUM grew by 57% over the year, reaching $20.6 billion. This was due to a net inflow of client funds and a positive revaluation of digital assets.

In July, Robinhood announced the acquisition of the investment and research AI platform Pluto Capital. The deal promises to offer more features utilizing artificial intelligence.

A month earlier, the broker agreed to acquire the oldest European bitcoin exchange, Bitstamp, for $200 million.

Previously, the company received a warning from the SEC about a potential lawsuit over securities law violations in its cryptocurrency business.

In January, Robinhood opened up BTC-ETF trading for its clients in the United States.