Robinhood’s crypto trading volumes surged 75 percent in November.

Cryptocurrency trading on Robin Hood increased by about 75% in November from the levels recorded in October, based on the company's previous results.

However, the volume of equity transactions and options contracts traded in November remained relatively consistent, matching the levels seen in October, according to a Dec. 4 Form 8-K filing with the US Securities and Exchange Commission (SEC).

Robinhood has reversed its earlier decline

The increase in cryptocurrency trading volumes marks a reversal for Robinhood, which saw cryptocurrency volumes decline by 55% year-over-year in its Q3 results presentation.

An increase in crypto trading activities may contribute to Robinhood's fourth quarter being more profitable. The recent rally in the crypto market, where total capitalization has grown by 40% to $1.6 trillion in the past two months, may have a positive impact on Robinhood's financial performance.

Robinhood's Q3 revenue fell short of analysts' estimates, reaching $467 million, with transaction-based revenue down 11% year-over-year to $185 million, primarily due to lower crypto volumes throughout 2022.

Robinhood co-founder and CEO Vlad Tenev expressed optimism during a November earnings call, suggesting the platform could generate “nine figures” in annual revenue. Tenev says it has seen renewed interest in crypto from retail investors, fueled by media coverage and rising Bitcoin prices near record highs.

Robin Hood's stocks are rising.

Robinhood's stock price is up 18% since the start of 2023. But the company's shares have been on a downward spiral since mid-July, following a 2023 high of $13. Robind's stock traded at $9.55 in after-hours trading, reflecting a 2.5% gain for the day at the time of writing.

Robinhood is set to launch its expansion plans in the UK markets. The company also plans to introduce credit card offerings in the coming year.

Robinhood also aims to introduce a futures business in 2024, subject to regulatory approval, which would be its third attempt to establish a presence in the UK. The Financial Conduct Authority (FCA), the UK markets regulator, has previously expressed concerns about the risks associated with gamification investments, a criticism often leveled at the Robinhood platform.

Despite these product releases, Wall Street's reaction to Robinhood stock has been lukewarm. JPMorgan analyst Ken Worthington said the company's focus on smaller, potentially less profitable accounts poses a risk to the sustainability of its growth. However, there is optimism in Robinhood's expected journey to profitability in 2024, which looks positive and sustainable as long as interest rates remain high.