Robinhood Markets may be an unexpected beneficiary from what looks like a new bull market in cryptocurrencies—but there is reason to believe the retail investor-focused broker could even be beating out crypto-native peer Coinbase Global by one metric.
Robinhood stock jumped 10.3% on Tuesday and the shares were up another 3% in premarket trading on Wednesday. The gains came after the broker revealed in a Monday filing that crypto trading volumes in November rose 75% from the month prior.
Crypto has become an increasingly important part of Robinhood’s business in recent years. Its latest quarterly results showed the company’s transaction revenue from token trading was only slightly less than for stocks. During times of crypto frenzy, the broker has earned more money from cryptos than vanilla stock trading.