Robinhood Crypto Trading Volume Dropped More Than 40% In May

Key Points:

• In May, Robinhood’s crypto trading volume fell precipitously while other transactions remained normal.
• The company claimed that bitcoin trade volume fell 43% from the previous month to $2.1 billion in May.
• After the Securities and Exchange Commission’s crackdown on Binance and Coinbase, the company is rethinking its cryptocurrency offers.

Robinhood, an online discount brokerage that provides a commission-free investing and trading platform, has disclosed selected monthly operational statistics for May 2023.

In May, crypto trading activity on Robinhood fell precipitously, while volume on stocks and options remained robust.

Assets Under Custody (AUC) were $81.8 billion at the end of May, up 6% from April 2023. In May, net deposits were $1.6 billion, representing a 25% yearly increase over the April 2023 AUC. Net Deposits were $16.5 billion over the previous twelve months, representing a 22% annual growth rate compared to the May 2022 AUC.

The business claimed that cryptocurrency trade volume fell 43% from the previous month to $2.1 billion in May. Crypto trade activity has decreased by 68% year on year, according to the report.

After the Securities and Exchange Commission’s (SEC) crackdown on two leading digital asset trading platforms, Binance and Coinbase, Robinhood is rethinking its cryptocurrency offers.

Users of Robinhood have access to a very small number of crypto assets – they may pick from 18 different tokens, compared to hundreds on Coinbase.

According to the company, Robinhood delisted three tokens as part of its routine review last week, leaving just 15 cryptocurrencies accessible for trade on the site. In recent cases against two exchanges, the SEC labeled the delisted tokens, Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL, as securities.

Dan Gallagher, the firm’s legal officer and a former SEC commissioner, said before the House Agricultural Committee at a hearing focused on digital assets that the brokerage is actively analyzing the regulator’s findings to decide what if any, measures to take.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News