Robinhood Markets Inc. HOOD reported a twofold surge in cryptocurrency volumes in the third quarter.

What Happened: The company released its financials after Wednesday’s closing bell and revealed a cryptocurrency notional trading volume of $14.4 billion, up 112% from last year.

Jason Warnick, Chief Financial Officer, said during the earnings call that notional volumes passed the $5 billion mark in October alone, and was set to surpass the third-quarter monthly average.

The surge in volumes helped power cryptocurrency-related revenue to $61 million, up 165% year-over-year.

The total quarterly revenue came in at $637 million, which missed the analyst consensus estimate of $650.67 million.

Robinhood also reported a notable increase in cryptocurrency rebates. The rebates have risen to 48 basis points in October, up from an average of 44 basis points in Q3, and 35 basis points at the start of the year.

The company’s cryptocurrency arm, Robinhood Crypto, allows users to trade in popular coins such as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE), and others.

See Also: Why Clearer Regulations Are ‘Unlocking’ Wall Street’s Move Into Digital Assets

Why It Matters: This surge in cryptocurrency volumes and rebates comes in the wake of Robinhood’s recent initiatives to expand its trading offerings.

Robinhood launched presidential election event contracts through its subsidiary, Robinhood Derivatives, LLC (RHD) earlier this week. These contracts allow users to trade based on predictions of the 2024 presidential election outcome.

Initially, these contracts were made available to a select group of customers who met certain criteria, including U.S. citizenship, but CEO Vlad Tenev confirmed on the call that the product has been rolled out to 100% of customers.

CEO Vlad Tenev said that the company wanted to win the “active trader market” with the launch of the product.

Price Action: Shares of Robinhood plunged 12.4% in after-hours trading, after closing 0.64% higher at $28.21 during Tuesday’s regular session.

Image via Shutterstock

Read Next:

Market News and Data brought to you by Benzinga APIs

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.