Robinhood shared in an SEC filing that crypto trading saw a notable 75% boost in November compared to the previous month. This revelation, tucked away in an 8-K update, comes as the platform grapples with a 55% dip in crypto trading revenue, dropping to $23 million in Q3.
Facing challenges, Robinhood’s CEO, Vlad Tenev, is working on steadying the ship. Despite a 1% dip in Robinhood’s stock over the past year, lingering 75% below its 2021 IPO price at $9.55 a share, Tenev remains cautiously optimistic. He’s directing efforts to revive the platform’s stock value, hoping ongoing initiatives will have a positive impact.
For those interested in international crypto ventures, Robinhood plans a quiet entry into the UK market in early 2024. UK traders will gain access to 6,000 US stocks and the convenience of 24-hour trading. The twist? Robinhood secures a license from the UK’s Financial Conduct Authority (FCA), addressing past criticisms of the platform gamifying investing.
This marks Robinhood’s third attempt to make its mark in the UK.
For the crypto enthusiast, Robinhood’s story of innovation unfolds. The 24-hour trading feature, introduced earlier this year in the US, now includes over 100 eligible stocks. The platform is eyeing potential futures trading in 2024, pending regulatory approval.
Brace for a crypto credit card, too, following the $95 million acquisition of credit card startup X1 in June. Tenev’s ambitious statement during the November earnings call envisions Robinhood generating “nine figures” in annual crypto revenue, adding a touch of boldness to the crypto landscape.
In the midst of crypto euphoria, Wall Street observes with a measured gaze. JP Morgan analyst Ken Worthington voices concerns about the sustainability of Robinhood’s crypto growth and its ability to carve competitive margins, especially with a focus on smaller accounts. Despite skepticism, the anticipated move to profitability in 2024 is seen as a positive, contingent on prevailing interest rates.
For crypto traders, Robinhood’s modest surge in crypto trading is worth a closer look. As the platform navigates challenges, its international expansion and innovations paint a nuanced picture amid scrutiny and skepticism.