Robinhood Sees Major Growth in Crypto amid User Increase

<p>Online
brokerage Robinhood Markets, Inc. (NASDAQ: HOOD) released its monthly operating
metrics for November 2023 today (Tuesday), showing steady growth in users and
assets. For another consecutive month, cryptocurrency volumes recorded the
strongest growth, at around 75%.</p><p>Robinhood Reports Higher
Assets and Volumes</p><p>Robinhood
reported 23.3 million net cumulative funded accounts at the end of November, an increase of about 20,000 from October. Additionally, assets under custody (AUC) climbed 12%
month-over-month (MoM) to $94.4 billion. The company saw $1.4 billion in net
deposits for the month.</p><p>In terms of
trading volumes, <a href="https://www.financemagnates.com/terms/e/equities/">equities</a> and options activity remained relatively flat
compared to October, while <a href="https://www.financemagnates.com/cryptocurrency/crypto-trading-skyrockets-on-robinhood-november-volume-jumps-75/" target="_blank" rel="follow">crypto volumes jumped 74% MoM to $4 billion</a>.</p><p>Strong
growth in crypto volumes is occurring for the second consecutive month and is
due to a resurgence in interest in digital assets in recent months. Since its
low in October, Bitcoin has doubled in value.</p><p>Robinhood
further reported $52.9 billion in equity trading volume and 95.3 million options
contracts traded. Margin loan balances edged down to $3.4 billion, while total
cash sweep balances rose 9% to $15.2 billion at month's end. The majority of
the increase came from Robinhood's Gold cash sweep product.</p><p>Strong Year-Over-Year
Change</p><p>Although
this does not specifically pertain to the dynamics of cryptocurrency volumes,
as these fell 30% compared to November 2023, all other major statistics
recorded a strong year-over-year (YoY) jump.</p><p>For
instance, AUC grew 34%, rebounding from a level of $70.2 billion, and the
number of funded accounts increased 300,000 YoY. Total trading volume rose 18%, showing steady growth in both equity and options contracts.</p><p>5% On Idle Deposits and
New Markets</p><p>In recent
months, Robinhood has been focusing heavily on developing new products and
entering new markets, including its cryptocurrency offerings. Just a week ago, <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance
Magnates</a> reported that the platform <a href="https://www.financemagnates.com/cryptocurrency/robinhood-enters-european-union-launches-crypto-trading/" target="_blank" rel="follow">entered the European Union</a> based on a
license issued in Lithuania, offering its users additional services, including
crypto transfers and <a href="https://www.financemagnates.com/terms/s/staking/">staking</a>.</p><p>Previously,
the company expanded its 24-Hour Market with new symbols, now offering over 200
stocks and ETFs. Moreover, in 2024, Robinhood plans to further extend its
presence in Europe, attempting once again <a href="https://www.financemagnates.com/forex/robinhood-aims-for-the-uk-market-comeback-in-2024-third-time-around/" target="_blank" rel="follow">to enter the UK market</a>. This will be
the retail trading platform's third attempt to acquire a license in the country.</p><p>Last month,
following the current trend in retail trading, Robinhood also announced an
increase in interest <a href="https://www.financemagnates.com/forex/robinhood-boosts-trading-volumes-launches-high-yield-5-savings/" target="_blank" rel="follow">on idle funds to 5%</a> for users of the Robinhood Gold
service. For other traders, the interest rate is 1.5%.</p>

This article was written by Damian Chmiel at www.financemagnates.com.