Robinhood turnover increased by 16 % in the first quarter, but not in the crypto sector

Robinhood turnover increased by 16 % in the first quarter, but not in the crypto sector

The stock and crypto investment app Robinhood reported a net turnover of $ 441 million, 16 % more than in the previous quarter in the first quarter of 2023.

However, the increased numbers are not due to the crypto business-that seems to develop in the opposite direction.

crypto sinks, interest rates rise

according to the results of the first quarter of the company report On Wednesday the transaction-based income of Robinhood increased by 11 % to 207 million US dollar.

This included an increase in option income by 7 % to $ 133 million and an increase in stock income by $ 27 million. On the other hand, the income from cryptocurrencies decreased by $ 38 million.

The crypto value also decreased by 30 % in the year, compared to $ 54 million in the first quarter of 2022, when the ratings of digital assets were significantly higher. Robinhood's net turnover rose by 47.5 %during this period, compared to $ 299 million in the previous year.

The company's largest source of income since last year was interest income. That rose by 25 % to $ 208 million. This is primarily due to the interest rate increases of the US Federal Reserve since last year, which were also responsible for a decline in both digital assets and technology shares.

Robinhood also announced the introduction of his 24-hour market, which offers trade access to popular ETFs and individual shares around the clock. On the platform, cryptocurrencies can already be traded around the clock.

"We have increased the sales four quarters in a row and at the same time reached a slimmer operating model," said Jason Warnick, Chief Financial Officer from Robinhood Markets. "At the same time, we have delivered new products and functions that have led to an enormous improvement in customer satisfaction."

Robinhood works with self-custodial wallets

Robinhood last year decided to set up several significant layoffs after it hired too many employees during the rapid growth in 2021, including personnel removal by 9 % April August .

Although the crypto income suffered a further slump in this quarter, the pace of the decline was much lower than in the previous quarters, such as the 25 % loss

Robinhood continues to develop crypto-related products. In April the company announced new integrations with certain self-controlling wallet providers that enable users to buy cryptocurrencies directly from their own wallet.

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