Robinhood Sees Major Growth in Crypto amid User Increase

Online brokerage Robinhood Markets, Inc. (NASDAQ: HOOD) released its monthly operating metrics for November 2023 today (Tuesday), showing steady growth in users and assets. For another consecutive month, cryptocurrency volumes recorded the strongest growth, at around 75%.

Robinhood reported 23.3 million net cumulative funded accounts at the end of November, up about 20,000 from October. Assets under custody (AUC) also climbed 12% month-over-month (MoM) to $94.4 billion. The company saw $1.4 billion in net deposits for the month.

In terms of trading volumes, equities and options activity remained relatively flat compared to October, while crypto volumes jumped 74% MoM to $4 billion.

Strong growth in crypto volumes is occurring for the second consecutive month and is due to a resurgence in interest in digital assets in recent months. Since its low in October, Bitcoin has doubled in value.

Robinhood also reported $52.9 billion in equity trading volume and 95.3 million options contracts traded. Margin loan balances edged down to $3.4 billion, while total cash sweep balances rose 9% to $15.2 billion at month’s end. The majority of the increase came from Robinhood’s Gold cash sweep product.

Strong Year-Over-Year Change

Although this does not specifically pertain to the dynamics of cryptocurrency volumes, as these fell by 30% compared to November 2023, all other major statistics recorded a strong year-over-year (YoY) jump.

For instance, AUC grew by 34%, rebounding from a level of $70.2 billion, and the number of funded accounts increased by 300,000 YoY. Total trading volume rose by 18%, showing steady growth in both equity and options contracts.

5% On Idle Deposits and New Markets

In recent months, Robinhood has been focusing heavily on developing new products and entering new markets, including its cryptocurrency offerings. Just a week ago, Finance Magnates reported that the platform entered the European Union based on a license issued in Lithuania, offering its users additional services, including crypto transfers and staking.

Previously, the company expanded its 24-Hour Market with new symbols, now offering over 200 stocks and ETFs. Moreover, in 2024, Robinhood plans to further extend its presence in Europe, attempting once again to enter the UK market. This will be the retail trading platform’s third attempt to acquire a license in the country.

Last month, following the current trend in retail trading, Robinhood also announced an increase in interest on idle funds to 5% for users of the Robinhood Gold service. For other traders, the interest rate is 1.5%.