Robinhood's Crypto Trading Explodes: $70 Billion Volume, Up 400% in Q4

Robinhood, the popular commission-free brokerage, has reported a staggering 400% year-over-year increase in crypto trading volume, reaching $70 billion in Q4 2024. The surge reflects a renewed interest in digital assets amid Bitcoin’s rise to $100,000 and heightened market activity ahead of the U.S. presidential elections.

Crypto and Equity Trading Surge

While crypto trading volumes soared, Robinhood also saw a 154% increase in equity trading volume, which hit $423 billion in the same quarter. Over the year, crypto trading fluctuated, declining from $36 billion in Q1 to $14.4 billion in Q3, before rebounding dramatically in the final quarter.

Robinhood’s transaction-based revenues surged 200% to $672 million, with cryptocurrency transactions contributing $358 million—a 700% jump compared to last year. Equity trading revenue also grew by 144% to $61 million.

Expanding Crypto Offerings

In Q4, Robinhood expanded its crypto services by adding seven new crypto assets in the U.S. and launching Ethereum staking in the EU. These additions highlight the platform’s commitment to expanding its presence in the digital asset space.

CEO Vlad Tenev previously hinted at internal discussions regarding holding Bitcoin as a corporate asset, though the company currently has no plans to maintain a BTC reserve. Additionally, Robinhood is preparing to introduce futures trading for Bitcoin, oil, and gold, further diversifying its offerings.

Robinhood’s Assets Under Custody Soar

The company’s assets under custody (AUC) jumped 88% year-over-year to $193 billion, driven by ongoing net deposits and increased valuations in both stocks and cryptocurrencies. AUC includes all equities, options, crypto, and cash holdings across user accounts, excluding receivables.

Financial Performance and Strategic Vision

Robinhood reported diluted earnings of $1.01 per share, significantly up from $0.03 per share in the previous year. Quarterly revenue stood at $1.01 billion, slightly surpassing expectations of $944 million.

CEO Vlad Tenev highlighted the company’s aggressive product development in 2024, including:

• A new trading platform for active investors
• The launch of the Robinhood Gold Card
• Expanded services in the UK and EU

Tenev reinforced Robinhood’s mission to democratize finance, stating: “We see a huge opportunity ahead as we work toward enabling anyone, anywhere, to buy, sell, or hold any financial asset and conduct any financial transaction through Robinhood.”