According to Cointelegraph: Contrary to expectations, Bitcoin ETFs have not eclipsed spot Bitcoin trading among Robinhood users, states company CFO Jason Warnick following the release of strong Q4 2023 performance figures. Bitcoin spot trading remains the dominant choice for the vast majority of the platform's crypto traders.
In an earnings call discussing Robinhood's Q4 2023 results on Feb. 13, Warnick disclosed that only 5% of its user's crypto trading is conducted via Bitcoin ETFs, with the remaining 95% favoring direct spot Bitcoin transactions. “We saw it was mostly additive. Some traders sold out of [trading] spot and got an ETF, but that was really more of the exception,” he said.
According to Warnick, some Bitcoin ETF trading on Robinhood is due to users adding ETFs to their retirement portfolios. The platform currently hosts all ten spot Bitcoin ETFs launched in the US, which went live for trading on Jan. 11 and have accumulated over $10 billion in assets under management since that date.
Improvements in crypto transaction revenue were a vital element in Robinhood's positive Q4 results, with company revenues reaching $1.87 billion for 2023, up 37% year-on-year. Q4 revenues alone amounted to $471 million, surpassing Zacks' analyst estimates by over 3% and sparking a surge in Robinhood's stock price.
Crypto trading revenue for Q4 2023 reached $43 million, reflecting a 10% yearly increase. Notably, Robinhood's notional crypto trading volume in Q4 rose by 89% compared to Q3, fueled by customer growth and higher trade volumes.
