Robinhood is experiencing explosive growth in its crypto business, with crypto revenues rising 700%, according to Johann Kerbrat, head of Crypto at Robinhood.
Speaking to Roundtable host Scott Melker Podcast, Kerbrat believes it has skyrocketed to increase enthusiasm among its customers and expand services on the platform.
“It was a great quarter for us. I think we’ve seen a lot of enthusiasm from our customers in the crypto space since the election,” Carblatt said. “And we were able to take advantage of the momentum. We were able to add new assets to the platform. We also deployed Crypto to a new web platform called Revenue Legend. And yeah, the whole thing. It’s a great quarter and we’re excited to continue this journey with our customers.”
California-based Robinhood Markets, which became prominent in the 2021 Gamestop Short Squeeze, surpassed $1 billion in revenue in the fourth quarter. During the election cycle, one in seven voters identified as “crypto voters,” contributed to an increase in market activity.
The company’s revenues were significantly above expectations, surpassing the $940.8 million analyst estimates by $69.2 million.
Mercer said Robinhood’s crypto growth is closely linked to market trends and will ask if the momentum will last until 2025.
“It’s very hard to say. Like you said, it really depends on the market, the state of the market, the way people see the code, and what they’re doing with it,” he said. explained. “I think what’s very interesting to us is that we’re more interested in defi spaces, so we can see that we’re going for more rabbit wallets, for example. You’re going to have a lot of things going on in the chain. I see, so I think it’s a good indicator that people are interested in cryptography and that they don’t just actually hold the platform, they’re doing more with their cryptography.”
When asked about customer behavior, Kerbrat noted that Robinhood is dealing with both first-time investors and more active traders.
“I think that’s what Robinhood is about. There are multiple segments of customers,” he said. “We have people who are new to investors. They just want to put their toes in Bitcoin or Ethereum, so they can either buy Spotcrypt or one of the ETFs in brokerages or retirement accounts. You can also buy it, so there is actually a very good platform.”
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