Robinhood reported a staggering 400% surge in crypto trading volume in the fourth quarter, reaching $70 billion, as retail investors flocked back to digital assets amid Bitcoin’s (BTC) rally past $100,000 and renewed enthusiasm for the broader crypto market.

The brokerage’s total transaction-based revenue more than doubled year-over-year, climbing 200% to $672 million. Crypto trading revenue played a dominant role in this growth, skyrocketing 700% to $358 million, while equity trading revenue rose 144% to $61 million.

Robinhood’s total fourth-quarter revenue reached $1.01 billion. The firm reported diluted earnings of $1.01 per share in the fourth quarter, a sharp increase from $0.03 per share a year earlier.

Crypto comeback after sluggish year

Robinhood’s crypto trading activity had steadily declined through most of 2024, with volume dropping from $36 billion in the first quarter to just $14.4 billion in the third.

The sharp rebound in the fourth quarter coincided with a broader market resurgence, fueled by Bitcoin’s rapid price appreciation, increased institutional adoption, and speculation around regulatory clarity in the US.

In addition to market momentum, Robinhood credited product expansion for its strong quarter. The company added seven new crypto to its US platform, introduced Ethereum (ETH) staking for European users, and announced plans to launch futures trading for Bitcoin, oil, and gold.

The firm has yet to commit to holding Bitcoin as a corporate reserve, though CEO Vlad Tenev acknowledged internal discussions on the matter in December.

Push for clearer regulation

Tenev, a vocal proponent of crypto adoption, has advocated for clearer regulatory guidelines in the US. In a Washington Post op-ed last month, he urged the Securities and Exchange Commission (SEC) to establish clear rules allowing early-stage companies to tokenize equity.

He advocated for regulatory reforms to democratize access to private market investments through tokenization. He highlighted that many high-growth companies are choosing to remain private, limiting investment opportunities to a select group of wealthy investors.

Tenev argued that by tokenizing private equity via blockchain technology, retail investors could gain early access to these companies, thereby reducing barriers while maintaining necessary disclosures and investor protections.

Beyond crypto, Robinhood has been aggressively expanding its product offerings. In 2024, the company launched a new platform for active traders, introduced the Robinhood Gold Card, and expanded its financial services suite in the UK and EU.

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