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Robinhood traders haven’t taken to spot Bitcoin&nbsp;exchange-traded funds (ETFs), with the bulk of crypto trading on the platform remaining in spot Bitcoin, says the company’s chief financial officer.
On a Feb. 13 earnings call for Robinhood’s fourth quarter (Q4) 2023 results, Jason Warnick said only 5% of its user’s crypto trading occurs through Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>)&nbsp;ETFs, with the other 95% opting for direct spot Bitcoin trading.
“We saw it was mostly additive. There were some traders that sold out of [trading] spot and got an ETF, but that was really more of the exception,” Warnick said. “Overall, we don’t view this as cannibalization. It’s additive.”
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-02/e4374d07-1db8-41bd-b9d1-947944d918f9.png" alt="" title="">
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 Robinhood’s crypto assets under custody (light green) jumped 87.5% year-over-year in Q4 to $15 billion. Source: Robinhood
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Warnick added that “some of the pickup” in the Bitcoin ETFs on its platform was from Robinhood traders adding ETFs to their retirement accounts. The platform offers all 10 United States spot Bitcoin ETFs that went <a href="https://cointelegraph.com/news/sec-spot-bitcoin-etf-approvals">live for trading on Jan. 11</a>.
The new roster of spot Bitcoin ETFs have raked in <a href="https://cointelegraph.com/news/bitcoin-etfs-hit-10b-milestone-just-month-after-approval">over $10 billion</a> in assets under management since they launched, with Bitcoin’s price jumping 6.5%, <a href="https://cointelegraph.com/news/bitcoin-btc-trades-above-50k-why-its-different">briefly surpassing $50,000</a> on Monday, Feb. 12 — its highest point in over two years.
<h2 data-ct-non-breakable="true" id="robinhood-crypto-revenue-rises-beats-estimates">Robinhood crypto revenue rises, beats estimates</h2>
Robinhood saw its revenues for 2023, specifically in Q4, bolstered by increased crypto transaction revenue. The company beat Wall Street analyst estimates and saw its stock price jump over 10% in after-hours trading.
Robinhood’s Q4 and full-year 2023 <a href="https://investors.robinhood.com/news/news-details/2024/Robinhood-Reports-Fourth-Quarter-and-Full-Year-2023-Results/default.aspx" target="_blank" rel="noopener nofollow">earnings</a> to Dec. 31, 2023, showed annual revenues of $1.87 billion, up 37% year-on-year. Its Q4 revenue earnings came in at $471 million, up 24% from a year earlier, beating Zacks analyst <a href="https://www.zacks.com/stock/news/2225811/robinhood-markets-inc-hood-surpasses-q4-earnings-and-revenue-estimates" target="_blank" rel="noopener nofollow">estimates</a> by over 3%.
Related: <a href="https://cointelegraph.com/news/bitcoin-etf-investment-portfolio">How Bitcoin ETFs could impact the average investment portfolio</a>
The trading platform pinned the jump in total Q4 revenues primarily on an increase in crypto trading revenue, which reached $43 million in the same timeframe, an increase of 10% year-over-year.
In its earnings <a href="https://s28.q4cdn.com/948876185/files/doc_financials/2023/q4/Q4-2023-Earnings-Presentation.pdf" target="_blank" rel="noopener nofollow">presentation</a>, Robinhood said its notional crypto trading volume in Q4 was up 89% over Q3, spurred by growth in customer numbers and overall trade volumes. 
Robinhood shares closed down around 1.5% on Feb. 13 but jumped 10.5% to over $13 in after-hours trading, <a href="https://www.google.com/finance/quote/HOOD:NASDAQ" target="_blank" rel="noopener nofollow">per</a> Google Finance.
<figure data-ct-non-breakable="true">
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 Robinhood shares gained over 10% after hours on Feb. 13. Source: Google Finance
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Its year-to-date share price has struggled, falling over 4% compared with the nearly 4.5% gain posted by the S&amp;P 500. Robinhood is down over 78% from its $55 all-time high on Aug. 6, 2021.
Big Questions: <a href="https://cointelegraph.com/magazine/big-questions-can-bitcoin-payments-make-a-comeback/">How can Bitcoin payments stage a comeback?</a>

Bitcoin ETFs haven’t cannibalized spot Bitcoin trading — Robinhood CFO

목차

Cointelegraph

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