Robinhood Reports a 75% Surge in Crypto Trading Volume in November

Hongji Feng
Last updated: | 2 min read
Source: DALL·E

Robinhood has reported a substantial 75% increase in cryptocurrency trading volume for November compared to October, highlighted in a recent filing with the U.S. Securities and Exchange Commission (SEC).

In their detailed 8-K update to the SEC, Robinhood’s significant uptick in crypto trading in November was noted to mark a notable shift in the platform’s recent performance. This increase in trading activity comes after a period of comparatively lower engagement, suggesting a renewed interest in cryptocurrency trading among Robinhood’s user base.

Crypto Trading Volume Recovered

The file provided by Robinhood to the SEC explicitly stated, “November Crypto Notional Trading Volumes were roughly 75% above October 2023 levels.” The “Notional Trading Volume” was defined as “the aggregate dollar value (purchase price or sale price as applicable) of trades executed in that asset class over a specified period of time,” November in this case.

Prior to this notable surge, Robinhood’s cryptocurrency trading had been witnessing a decline. The exchange had reported a significant decrease in transaction-based revenues from cryptocurrencies, with a 55% drop to $23 million in the third quarter of 2023.

This downturn was a continuation of the trend observed in the second quarter, indicating a period of reduced trading activity and revenue from digital assets on the platform. The recent upturn in November’s trading volumes may represent a key reversal in this trend, signaling a resurgence of interest in cryptocurrency trading among Robinhood users.

Robinhood to Launch in EU and UK

Though the company’s crypto revenue had a 26% slide from the previous quarter, it still persists to expand. Vlad Tenev, CEO and co-founder of Robinhood, announced that the exchange will expand to the European Union in the near future.

“Looking ahead, we remain focused on providing industry-leading products that serve far more of customers’ financial needs, gaining market share, expanding internationally, and continuing to change the industry for the better,” said Tenev.

In addition to the EU, Robinhood also plans to launch in the U.K. in early 2024, targeting the British market along with the continent.

“The intention is, for the U.K. market, Robinhood to be the best place to invest in U.S. stocks and U.S. dollars, and we believe we can fulfill that need better than anyone else,” said Tenev in an interview. The company has plans to launch commission-free share trading of U.S. stocks as well as a 5% ADR on invested cash and its 24-hour trading feature in the U.K.

“I think that’s particularly useful for consumers here because there’s just less overlap between waking hours and U.S. East Coast hours,” said Tenev. “So that’ll just make it a lot more usable and a lot more welcoming for customers to invest here.”