Robinhood’s Surprising Revelation: Spot Bitcoin ETFs Make Up 5% of Crypto Trading Activity

Robinhood's Surprising Revelation: Spot Bitcoin ETFs Make Up 5% of Crypto Trading Activity
Table of Contents


  • Robinhood reveals that Bitcoin ETFs make up 5% of its crypto trading volume, while spot trading accounts for the rest.
  • The company reports a 24% increase in revenue and a 10% increase in crypto revenue in the fourth quarter, beating analysts’ expectations.
  • Robinhood expands its crypto offerings to the UK and the EU, attracting tens of thousands of international customers.

Robinhood, a widely-used trading platform, recently disclosed that Bitcoin Exchange Traded Funds (ETFs) constitute 5% of its total cryptocurrency trading volume. The platform’s crypto division handles the remaining 95% through spot trading.

In a recent quarterly earnings call, Robinhood’s CFO, Jason Warnick, expressed his contentment with the ETFs’ performance. He stated that offering such a selection to customers not only stimulates overall market interest in cryptocurrencies but also enhances market liquidity.

In a landmark move for the digital asset industry, the Securities and Exchange Commission (SEC) approved 11 Bitcoin ETFs in January. Robinhood swiftly incorporated all 11 ETFs into its offerings for its customers.

Warnick further noted that while some traders transitioned from Bitcoin spot trading to ETFs, such instances were more the exception than the norm. He also mentioned that the availability of ETFs in retirement accounts contributed to their popularity.

Robinhood Beats Earnings Expectations, Driven by Crypto Revenue Surge

Robinhood's Surprising Revelation: Spot Bitcoin ETFs Make Up 5% of Crypto Trading Activity

In the final quarter, Robinhood reported an increase of 8% in transaction-based revenues, amounting to $200m. This growth was primarily driven by a 10% surge in crypto revenue, which reached $43m. The overall revenue for the fourth quarter rose by 24% to $471m, with earnings per share standing at $0.03. These figures exceeded analysts’ predictions of $457m in revenue and an anticipated loss of $0.01 per share.

The company disclosed that the notional crypto trading volume experienced an 89% rise compared to the previous quarter, a result of heightened customer activity. In recent months, Robinhood made its international debut, initially launching stock brokerage services in the UK. This was followed by an expansion of its crypto offerings into the European Union, allowing users to trade more than 25 digital currencies.

Robinhood’s CEO, Vlad Tenev, stated that the app’s internal expansion has so far attracted tens of thousands of international customers. He added, “We’re investing a larger amount into crypto, both in the EU and domestically. I believe there are still numerous improvements to be made.”

In the ever-changing world of cryptocurrencies, platforms such as Robinhood are expected to continually adapt to shifts in user preferences and trading patterns. Although ETFs have not yet become the primary method for Bitcoin trading on Robinhood, their availability on the platform offers users a broader range of investment options and increased versatility.


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