Robinhood Markets experienced a significant decline in trading activity across equities, options, and cryptocurrencies in November, leading to an 8% drop in its shares. The company's total platform assets fell 5% month-over-month to $325 billion, raising concerns about waning retail investor interest. This slowdown follows a period of heightened activity earlier in the year.
Robinhood Markets, the popular brokerage platform, disclosed a marked reduction in trading volumes for November, affecting multiple asset classes and prompting investor unease. Crypto trading volume reached $28.6 billion, marking a 12% decrease from October's $32.5 billion figure and a 19% drop compared to the previous year, when volumes surged amid Donald Trump's election win. The acquisition target Bitstamp also reported an 11% volume decline during the same period.
Equity trading fared no better, with volumes plunging 37% month-over-month to $201.5 billion, though they remained 37% higher than the year-earlier level. Options trading similarly weakened, contributing to the overall slump. These developments led to a 5% reduction in total platform assets, settling at $325 billion by month's end.
The downturn has fueled worries that the recent uptick in retail trading enthusiasm might be dissipating as the year closes. For Robinhood, which relies heavily on transaction fees, diminished volumes pose risks to revenue streams. On Thursday, shares in Robinhood (HOOD) fell 8%, though they have climbed 216% over the year to date, reflecting broader market gains earlier.
