BLK - Robinhood's Trading Volumes Surge As Crypto Rally Grows

2024-03-14 09:57:19 ET

Online stock trading app %Robinhood (NASDAQ: ) has reported a surge in volumes as retail investors chase the rally in %Crypto currencies.

Robinhood has reported that equity trading volumes totaled $80.90 billion U.S. in February of this year, up 36% from January and up 41% from the same period a year ago.

Robinhood’s stock has gained 8% on news of the increased trading volumes.

The company attributed the increased trading to retail investors who are piling back into the stock market and have a particular interest in the current rally in cryptocurrencies.

Many %Crypto investors and traders pulled out of the market during a prolonged downturn in 2022 that sent the price of %Bitcoin (CRYPTO: ) below $16,000 U.S.

But now, with Bitcoin trading at an all-time high of $73,000 U.S., retail investors’ interest in digital coins and tokens has been reignited, said Robinhood.

The company said that crypto trading volumes on its platform totaled $6.50 billion U.S. in February, up 10% from January and 86% higher than a year earlier.

Robinhood added that crypto trading volumes continue to grow, driven by retail investors and despite growing competition from spot Bitcoin exchange-traded funds (ETFs) issued by asset managers such as %BlackRock (NYSE: ).

The stock of Robinhood Markets is now up 50% in 2024 and trading at $18.58 U.S. per share.