Robinhood, the retail trading platform, reported $252 million in revenue from crypto trading in the first quarter of 2025, according to its newly released Q1 financial report.
This marks a 100% increase year-over-year, making crypto the primary driver behind the company’s overall growth in trading revenue.
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Robinhood’s total transaction-based revenue jumped 77% from a year ago, reaching $583 million. According to the document, the surge was fueled by strong activity across crypto, equities, and options trading.
Crypto trading volume alone rose over 28% year-over-year, hitting $46 billion in Q1 2025.
Plans to Hedge Against Volatile Market Shifts
Robinhood’s Q1 crypto trading revenue dropped 30% from $360 million last quarter, with volume falling to $46 billion from $71 billion in Q4 2024.
The decline was driven by broader downturns in both the crypto and financial markets, fueled by macroeconomic instability linked to the U.S. President’s global tariff policies.
Yet, crypto trading still represented 25% of Robinhood’s total net revenue in Q1. Despite that, CEO Vlad Tenev emphasized the company’s efforts to diversify its revenue streams and lessen its dependence on the volatile crypto market.
“It’s going to go up and down in terms of trading volume,” Tenev said about crypto trading during this week’s Robinhood earnings conference call. “We’re diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes.”
Robinhood started offering crypto trading in February 2018 and is one of several fintech companies, like eToro, Revolut, and PayPal, that have entered and competed in the crypto trading space.
Why This Matters
Crypto trading remains a major growth driver for companies like Robinhood and Revolut. The latter recently reported a record $1.5 billion annual profit, largely fueled by its crypto trading business.
On the Flipside
- Robinhood’s decision to reduce its reliance on crypto trades comes in the same week that Morgan Stanley, a major Wall Street giant, announced plans to offer crypto trading for retail investors through its E*Trade platform by 2026, increasing competition among retail-targeting service providers.
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