Robinhood launches crypto trading services in Europe

December 7, 2023 Coin Telegraph

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December 6, 2023 The Daily Hodl

Robinhood crypto trading rises 75% in Nov, CEO tips ‘9 figures’ in revenue

December 5, 2023 Coin Telegraph

The trading platform posted a sharp rise in monthly crypto trading volumes in November, while CEO Vlad Tenev said he hopes to eventually reel in “nine figures” in annual revenue.

Crypto-friendly trading platform Robinhood has reported a 75% month-on-month increase in digital asset trading volume in November.

In an 8-K filing to the Securities and Exchange Commission on Dec.

The activity however equity trading volumes and options contracts traded were roughly flat in the same month compared to October.

The bumper month marks a reversal for Robinhood, which revealed a 55% decrease in cryptocurrency notional volumes over the year in its Q3 results filing.

As a result, its Q3 revenue came in below analyst estimates for the quarter at $467 million.

*Robinhood’s 8-K report showing preliminary operating data for November 2023. Source: SEC*

Robinhood could be eyeing a more profitable fourth quarter in light of the recent crypto market rally, which has seen total capitalization surge 40% to $1.6 trillion over the past two months.

Robinhood co-founder and CEO Vlad Tenev told investors in a November earnings call that the platform could eventually reel “nine figures” in annual revenue.

Robinhood to roll out US stock trading in British market

November 30, 2023 Coin Telegraph

Coin Telegraph

Robinhood CEO Vladimir Tenev said in an interview with Bloomberg that the company is still focused on its global aspirations, and its U.K. expansion is one step toward that.

In another attempt to expand its business internationally, online trading platform Robinhood has announced plans to launch its stock exchange application in the United Kingdom.

In an interview with Bloomberg, Robinhood co-founder and CEO Vladimir Tenev said that the app has already opened a waitlist for those who want to get early access. The executive added that the company is set to gradually open its platform to everyone in the U.K. in early 2024. Tenev explained.

“The intention is, for the U.K. market, Robinhood to be the best place to invest U.S. stocks, U.S. dollars, and we believe we can fill that need better than anyone else.”

The launch will allow users in the U.K. market to trade 6,000 stocks in the United States. According to Tenev, Robinhood will also roll out its 24-hour trading feature in the United Kingdom. The feature was recently implemented in the U.S., according to Tenev.

The move restarts Robinhood’s attempt to reach a more global market. “I aspire for Robinhood to be a global company. That’s been the plan from the very beginning,” Tenev said.

“Baiju and I started this company as immigrants and children of immigrants, and so, the idea of making our services [...] available to anyone in the world is just the vision that I had in mind from the very beginning,” Tenev explained in the interview.

This is not the first time that Robinhood has attempted to penetrate the U.K. market. In 2019, the company tried to launch its trading app in the U.K. after receiving approval from the Financial Conduct Authority, a major U.K. regulator. However, in 2020, the company announced that it was postponing its U.K. launch and freezing its global expansion plans indefinitely.

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Robinhood meme stock punters denied class suit certification

November 15, 2023 Coin Telegraph

Coin Telegraph

A court has rejected a motion requesting class action certification from investors pursuing legal action against Robinhood

Investors pursuing legal action against Robinhood over trading restrictions imposed in early 2021 have faced another setback in court after the Florida Southern District Court rejected the request for class certification by the plaintiffs on Nov. 13, 2023.

Chief Judge Cecilia M. Altonaga said that after thoroughly considering the written submissions, record, and relevant law, the plaintiffs’ motion was rejected because they could not persuade the court that issues of individualized reliance would not be prevalent.

Robinhood is a platform that provides commission-free trading for stocks, ETFs, options, and cryptocurrencies. Users can trade these financial instruments via its app or website without incurring traditional fees.

The plaintiffs aimed to certify a class asserting market manipulation claims under federal securities laws against Robinhood Markets, Inc., Robinhood Financial LLC, and Robinhood Securities, LLC.

The lawsuit centers on accusations of market manipulation by Robinhood, stemming from its trading limitations in early 2021 during the “meme stock” short squeeze. Notably, heightened market volatility in January 2021 led regulators to increase deposit requirements for clearing brokers, including Robinhood, to mitigate the risks associated with unexecuted trades.

Robinhood could not meet the increased deposit requirements and pursued an alternative solution to satisfy regulators. The company succeeded when regulators granted a waiver for the deposit requirements, contingent on Robinhood implementing restrictions on its customers’ ability to trade specific stocks.

The platform attributed its restrictions to market volatility, vehemently denying any liquidity issues. Plaintiffs claim the platform manipulated the market by imposing restrictions, presenting “half-truths” about volatility while conveniently omitting any acknowledgment of liquidity challenges.

Robinhood urged the court to reject class certification, citing deficiencies in the class representatives and asserting that individualized issues of reliance and damages will overshadow common concerns. The plaintiffs contended that their representatives are sufficient, and the case is suitable for class certification.

The court acknowledged that, for the most part, the plaintiffs have shown that the case and their representatives are suitable for class treatment. However, they could not persuade the Court that issues of individualized reliance would not be prevalent.

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Cathie Wood’s ARK bags 1.1M Robinhood shares in one day

November 9, 2023 Coin Telegraph

Coin Telegraph

Cathie Wood’s ARK Invest has continued accumulating Robinhood shares while dumping Grayscale Bitcoin Trust shares.

ARK Invest, the investment firm founded by major Bitcoin (BTC) advocate Cathie Wood, is actively accumulating stock of the crypto-friendly app Robinhood (HOOD).

On Nov. 8, ARK made a massive Robinhood stock purchase, bagging a total of 1.1 million shares for about $9.5 million in one day, according to a trade notification seen by Cointelegraph.

The purchase involved three innovation exchange-traded funds (ETF) managed by ARK, including ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF).

ARKK has allocated the biggest amount of shares in the purchase, buying 888,500 HOOD shares, or 78% of the entire daily buy. ARKW and ARKF allocated 152,849 shares and 99,697 shares, respectively.

The mega purchase followed steady Robinhood equity-buying by ARK, though the most recent purchases involved significantly smaller purchases. On Oct. 23, ARK purchased 197,285 Robinhood shares for its ARKW funds, following a 259,628 HOOD buy on the previous day.

The latest buy came as Robinhood on Nov. 8 disclosed plans to expand into Europe in the coming weeks, particularly exploring establishing brokerage operations in the United Kingdom. The announcement coincided with the HOOD stock plunging over 14% after the online brokerage reported worse-than-expected results as trading activity and users declined. According to data from TradingView, Robinhood closed at $8.37 on Nov. 8.

*Robinhood (HOOD) five-day price chart. Source: TradingView*

While actively buying Robinhood, ARK has continued to sell Grayscale Bitcoin Trust (GBTC) shares, with ARKW dumping another 48,477 GBTC for $1.4 million on Nov. 8. On Nov. 6, ARKW sold another large portion of GBTC of 139,506 shares, worth nearly $4 million.

ARK started selling GBTC shares in late October 202, following a year's break from touching the GBTC stock. Since Oct. 24, ARK has sold a total of 427,573 GBTC shares, worth about $11.9 million at the time of writing. The purchase amount is nearing the amount of GBTC shares sold by ARK in November 2022.

ARK has concurrently also announced the launch of new ETFs focused on Bitcoin and Ether futures contracts in collaboration with its major crypto ETF partner, 21Shares. According to joint prospectuses, the firms expect to launch trading of five new crypto products on the Chicago Board Options Exchange on by Nov. 16.

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Robinhood eyes European expansion amid Q3 revenue drop

November 8, 2023 Coin Telegraph

Coin Telegraph

Robinhood attributed the decline in its transaction-based revenue to reduced cryptocurrency trading volumes on the platform.

Trading platform Robinhood has revealed its intentions to expand into Europe in the coming weeks. The company is exploring establishing brokerage operations in the United Kingdom. It made this decision known on Tuesday, Nov 7.

The commission-free trading app made this announcement as it revealed its third-quarter results, indicating a revenue miss. Robinhood attributed the decline in its transaction-based revenue to reduced cryptocurrency trading volumes on the platform.

The firm reported a net revenue of $467 million, slightly below the average analyst estimate of $478.9 million. Nevertheless, this marked 29% growth compared to the same period last year. Transaction-based revenues declined by 11% year-on-year to $185 million, largely due to a 55% decrease in cryptocurrency notional volumes over the year, as stated in Robinhood’s Tuesday announcement.

*Screenshot of Robinhood’s third quarter results. Source: Robinhood*

Despite the decrease in cryptocurrency trading activity, Robinhood has ambitious plans for its crypto services. The company recently revealed its intentions to expand its services to Nevada and added support for the meme cryptocurrency Shiba Inu (SHIB) last month.

Cointelegraph reached out for more information regarding the expansion to the European Union but has yet to hear back from Robinhood.

The move comes as some crypto firms have suspended serving U.K. customers thanks to new promotion rules that require crypto firms to provide clear risk labels and implement system changes that came into effect on Oct. 8.

Back in June, Robinhood ceased support for cryptocurrencies listed in United States Securities and Exchange Commission lawsuits against Binance and Coinbase, including Cardano (ADA), Polygon (MATIC) and Solana (SOL). Presently, Robinhood facilitates trading for 15 various cryptocurrencies, such as Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE) and Avalanche (AVAX).

This occurred when the U.S. SEC targeted alternative cryptocurrencies, labeling them as security tokens. As a regulated exchange, Robinhood seeks to prevent clashes with the federal securities regulatory authority.

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