Robinhood’s Crypto Revenue Hits Lowest In 3 Years But Still Expands Crypto Operations + More News
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In Q2 2021, fees from trading dogecoin (DOGE) accounted for 32% of investment platform Robinhood’s net revenue. But since then, its crypto revenues have declined, dropping from $233 million during the surge to $23 million in Q3 2023.
“I can’t control the price of Bitcoin or the total volumes in the market,” CEO Vlad Tenev told Fortune. “But if we’re growing market share steadily during bear markets, and growing it much more quickly in bull markets, I think that’s an indication that our strategy is the correct one.”
Robinhood, however, has continued to expand its footprint in the world of decentralized money, even amid the massive regulatory turbulence.
It is launching in Europe, taking advantage of a friendlier legal environment and regulators clarity. It’s also relisting coins that the US SEC alleged were unregistered securities and adding other cryptos not available in the US.
“We will keep adding for sure,” head of crypto Johann Kerbrat said, referring to potential products in Europe. He declined to be more specific about the additions.
Even though Robinhood seems to want to distance itself from the memecoin mania of 2021, its plans do include dogecoin.
“We don’t see Dogecoin as a negative asset for us,” Kerbrat said. Tenev “enthused” about the cryptocurrency’s status as an “inflationary coin” and its different “properties,” Fortune said.
Entering the EU is part of Robinhood’s larger engagement with crypto over the years, during which its fees from crypto trading range from just a few percentage points of net revenue to accounting for nearly half.
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