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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.

Robinhood Crypto Trading Volume Dropped More Than 40% In May 4

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.

Robinhood Crypto Trading Volume Dropped More Than 40% In May 5

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.

Robinhood Crypto Trading Volume Dropped More Than 40% In May 6

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.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.