Robinhood Markets Inc (NASDAQ:HOOD) Chief Financial Officer, Jason Warnick, on Tuesday addressed the role Bitcoin (CRYPTO: BTC) exchange-traded-funds have begun to play following their addition to the trading platform.
What Happened: During an earnings call on Tuesday, Warnick, in a response to analyst Alex Markgraf, emphasized the platform’s success in offering all 11 Bitcoin ETFs from the get-go—a move that he believes was beneficial to their customers. According to Warnick, these new offerings haven’t detracted from traditional crypto trading, as most users still prefer engaging with cryptocurrencies directly.
Warnick revealed that the Bitcoin ETFs account for “about 5% of our overall trading in crypto,” with the remainder being traditional, or “spot,” crypto trading activities. While some users have shifted from spot to ETFs, Warnick assured this was more of the exception, underscoring that the ETFs were “mostly additive” rather than replacements for direct buying.
“So we’re really pleased to be offering all 11 of the Bitcoin ETFs on the first day of trading, I think that was a great outcome for customers. So far we’re seeing nice interest in the ETFs, but we think it’s additive. About 5% of our overall trading in crypto is through the ETF, with 95% still being on spot trading through the crypto business, and that’s stabilized. So we feel really good to offer the selection for customers. We think it increases overall market interest in crypto and also brings liquidity to the market. So net-net, we’re really pleased with the Bitcoin ETFs,” he said.
See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals
Why It Matters: Robinhood boasted a 10% year-over-year increase in crypto revenue during the fourth quarter, reaching $43 million, as user activity in the crypto space expanded. This surge is attributed to the platform’s higher trading volume—an 89% jump from the previous quarter—fueled by enthusiasm surrounding new Bitcoin ETFs and a general uptick in the cryptocurrency market.
These figures came alongside Robinhood’s overall fourth-quarter revenue of $471 million. CEO Vlad Tenev expressed satisfaction with the year’s performance. “We’re investing a larger amount into crypto. I think there is a ton…
Click Here to Read the Full Original Article at Cryptocurrencies Feed…
