Massive Surge in Robinhood's Q1 Crypto Trading Volume Amid SEC Scrutiny

By: Eliza Bennet

Trading platform Robinhood disclosed a substantial increase of 224% year over year in their crypto notional trading volume during the first quarter of 2024, hitting a $36 billion figure. The company has also seen a significant upsurge in record net revenues of $618 million, a 40% rise year over year

Transaction revenues, which incorporate revenues generated from Robinhood’s crypto business, constituted $329 million. Out of this, crypto business generated $126 million, marking a 232% annual growth. The firm reported a net income of $157 million contrasted with a net loss of $511 million in the same period a year earlier. Diluted earnings per share (EPS) stood at $0.18 for the quarter, with $26.2 billion in assets associated with user cryptocurrencies safekeeping.

These outcomes surpass the expectations of external observers who projected Robinhood to register $549 million in first-quarter revenue and diluted EPS of $0.06. Despite the increase, Robinhood’s stock (HOOD) experienced a slight decrease of 0.78% on May 8 but found a recovery of 3.64% after market hours.

Amid these financial developments, Robinhood's executives communicated their stance on the recent Wells Notice given to the firm's crypto department by the US SEC, stating their commitment to ensuring consumers' access to crypto as an asset class and adherence to regulatory requirements.