Spot Bitcoin ETFs Contribute 5% of Crypto Trading Volume on Robinhood: CFO
Robinhood on Tuesday revealed that about 5% of its total crypto trading activity originates from recently introduced spot Bitcoin ETFs.
The remaining 95% still stems from spot trading conducted within the platform’s crypto division.
During the quarterly earnings call, CFO Jason Warnick said the platform is seeing “nice interest in the ETFs, but we think it’s additive.”
“We feel really good to offer the selection for customers. We think it increases overall market interest in crypto and also brings liquidity to the market. So, net-net, we’re really pleased with the Bitcoin ETFs,” he said.
The SEC approved 11 spot Bitcoin ETFs in January, a milestone moment for the digital asset sector as it expands access to the leading crypto on Wall Street and beyond. Robinhood swiftly integrated all 11 ETFs to provide to its customers.
“There were some traders that sold out a spot and got to ETF, but that was really more of the exception. And we also offer the ETFs in our retirement accounts, which accounted for some of the pickup as well,” Warnick said.
In the fourth quarter, Robinhood reported an 8% jump in transaction-based revenues to $200m. The growth was mainly fueled by crypto revenue, which surged 10% to $43m.
Overall fourth-quarter revenue increased by 24% to $471m, with earnings per share at $0.03. This surpassed analysts’ estimates of $457m and an expected loss of $0.01 per share.
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