Robinhood Markets noticed its income greater than double within the fourth quarter of 2024. This was fueled by a surge in cryptocurrency buying and selling owing to the favorable US presidential election.
The corporate reported $1.01 billion in income, which surpassed analysts’ projections of $940.8 million.
Robinhood Doubles Income in This fall 2024
Crypto buying and selling performed a big function as income on this class elevated by greater than 700% to $358 million, based on Robinhood’s newest report. In the meantime, Belongings Below Custody (AUC) grew by 88% year-over-year, reaching $193 billion, which was attributed to continued Web Deposits and rising valuations in equities and cryptocurrencies.
In an announcement, Robinhood Chief Government Officer Vlad Tenev stated,
“We hit the gasoline on product improvement in 2024. We see an enormous alternative forward of us as we work towards enabling anybody, anyplace, to purchase, promote, or maintain any monetary asset and conduct any monetary transaction by way of Robinhood.”
Notably, Robinhood expanded its crypto choices in the US and European Union, with notional crypto volumes surging over 400% year-over-year to $71 billion within the fourth quarter of the 12 months. Throughout this era, the corporate added seven new crypto property within the US and launched Ethereum (ETH) staking within the EU.
Moreover, in June 2024, Robinhood announced plans to accumulate outstanding crypto trade Bitstamp, pending regulatory approvals. This deal is anticipated to shut within the first half of 2025.
Previously month, the corporate made index choices accessible to all customers and commenced rolling out in-app futures buying and selling, enabling trades throughout inventory indexes, vitality, forex, metals, and crypto. In the meantime, Robinhood Legend, the desktop platform designed for lively merchants and launched in October 2024, has launched almost 30 new indicators and expanded to incorporate crypto buying and selling.
Robinhood Derivatives Tussle With CFTC
Regardless of record-breaking earnings, Robinhood Derivatives was compelled to suspend its sports activities occasion contracts earlier this month following a directive from the Commodity Futures Buying and selling Fee (CFTC), which requested the platform not permit buyer entry to those contracts. The transfer halted the rollout of Robinhood’s Professional Soccer Championship market, which was launched to 1% of customers.
Robinhood expressed disappointment whereas citing common communication with the CFTC and efforts to advocate for balanced derivatives regulation. The suspension comes amidst intense scrutiny by the CFTC on related contracts, together with these by Crypto.com and Kalshi.
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