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The surge in the company’s crypto business comes at a time when the industry is attracting interest from both retail and institutional investors thanks to the approval of bitcoin spot ETFs in the United States and Hong Kong.
Key Notes
In October, Robinhood's user base grew to 24 million, and the company recorded a substantial $5.2 billion in deposits.The company's crypto business was not left behind, thanks to the recent hike in Bitcoin's price and the introduction of Bitcoin spot ETFs.As of October, $126.4 billion worth of cryptocurrencies were traded on the platform.Robinhood, an American trading and clearing company, witnessed a significant milestone in its growth last month. The company exceeded 24 million users worldwide, and deposits in October reached an impressive $5.2 billion.
According to the firm’s latest financial report, the net deposits in October reflect a 41% annualized growth rate compared to September’s figures. Over the past year, total net deposits amounted to $43.2 billion, showcasing a robust 51% annual growth rate compared to October 2023. This surge in customer activity aligns with Robinhood’s strategy to strengthen its foothold within the global financial market.
Robinhood’s Crypto Trading Volume Soars 51% in October
Robinhood saw a notable uptick across various metrics in October, with assets under custody (AUC) hitting $159.7 billion. This figure represents a 5% increase from September and an impressive 89% year-over-year growth. In October alone, the company attracted approximately 90,000 new funded accounts, further solidifying its position as a leader in the industry.
“Net Deposits were $5.2 billion in October, translating to a 41% annualized growth rate relative to September 2024 AUC,” Robinhood commented in its report, highlighting the substantial inflow of funds from its ever-expanding user base.
Alongside this growth, Robinhood’s trading metrics also saw marked improvements. Equity trading volumes soared by 48% month-over-month to $126.4 billion, while crypto trading volumes surged 51%, reaching $5.6 billion. The options trading segment was not left behind, with contracts increasing 16% to 158 million in October.
The surge in the company’s crypto business comes at a time when the industry is attracting interest from both retail and institutional investors, thanks to the approval of bitcoin spot ETFs in the United States and Hong Kong.
Rinhood has also expanded its business to other jurisdictions outside the United States to better position itself for growth. In October, the company expanded its crypto offerings to Europe.
Robinhood Sees $50.8B in Equity Trading Volume
While Robinhood experienced remarkable growth in October, year-over-year comparisons paint an even more noteworthy picture. According to the company’s report, equity trading volumes were up 149% from $50.8 billion in October 2023, while crypto trading surged 143% from $2.3 billion during the same period.
The recent gains have reaffirmed the strong performance reported in Robinhood’s 2024 Q3 earnings, where the company noted $637 million in revenue – a 36% jump compared to the previous year.
Another contributing factor to Robinhood’s success has been the rise of its margin and cash sweep balances. Margin balances grew 13% month-over-month to $6.2 billion, while cash sweep balances increased by 4%, reaching $25.5 billion. Revenue from securities lending also climbed to $19 million, representing a 6% increase compared to September.
The surge in user engagement and deposits comes amid a broader shift in market dynamics. Robinhood Markets Inc (NASDAQ: HOOD) stock saw significant gains, rising over 7% during Monday’s trading session and pushing past $34 per share, the highest level the stock has reached in three years.
The uptick is partly attributed to the recent rally in Bitcoin BTC $87 348 24h volatility: 3.3% Market cap: $1.72 T Vol. 24h: $171.55 B , which has approached record highs of nearly $90,000.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
