Tumbling crypto costs seem to have performed an element in disappointing general buying and selling quantity outcomes for Robinhood (HOOD).
The brokerage app reported crypto quantity of $28.6 billion in November, down 12% from October’s $32.5 billion. That quantity was additionally down 19% from year-ago ranges, when crypto was surging because of Donald Trump’s election victory.
Bitstamp, the crypto trade Robinhood agreed to accumulate earlier this 12 months, additionally noticed volumes fall 11%.
As for fairness buying and selling volumes, they struggled as effectively, dropping 37% month-over-month in November to $201.5 billion. They had been, nevertheless, greater by 37% on a year-over-year foundation.
Robinhood’s complete platform belongings declined by 5% in November to $325 billion.
The November slowdown raised issues that the burst of retail buying and selling exercise seen in latest months could also be cooling. For an organization closely depending on transaction-based income, slumping volumes in equities, choices and crypto can weigh on earnings potential.
Shares are decrease by 8% on Thursday, however stay greater by 216% on a year-to-date foundation.
