Robinhood Markets Inc., the favored buying and selling platform recognized for democratizing investing, has released its working knowledge for Could 2023, displaying a rise in each fairness and choices buying and selling however a decline in cryptocurrency buying and selling.
In Could, Robinhood’s Internet Cumulative Funded Accounts (NCFA) reached 23.1 million, a progress of round 20,000 from the earlier month. This determine, nevertheless, solely represents distinctive customers, because it doesn’t rely current clients who’ve opened a number of accounts.
Regardless of the rise within the variety of funded accounts, Robinhood reported a drop in Month-to-month Energetic Customers (MAU), which fell by roughly 900,000 from April to Could 2023, bringing the whole to 10.6 million.
The buying and selling platform skilled an uptick in Property Beneath Custody (AUC), with a 6% enhance from April to $81.8 billion by the tip of Could. Internet deposits for the month of Could totaled $1.6 billion, an annualized progress price of 25% in comparison with April’s AUC. Over the previous yr, internet deposits have reached $16.5 billion, reflecting an annual progress price of twenty-two% relative to Could 2022 AUC.
Nevertheless, on the subject of buying and selling volumes, Robinhood’s report confirmed contrasting tendencies. Whereas fairness notional buying and selling volumes rose 27% to $49.4 billion, and choices contracts traded elevated 29% to 97.5 million, cryptocurrency buying and selling went down. Crypto notional buying and selling volumes decreased considerably by 43% to $2.1 billion, reflecting a relative decline within the enthusiasm for cryptocurrency buying and selling amongst Robinhood’s consumer base in Could.
The corporate’s margin balances remained steady at $3.1 billion, displaying no change from April 2023. Money sweep balances, then again, confirmed a marked enhance, rising 16% from the tip of April to $11.2 billion by the tip of Could.
The report gives insights into Robinhood’s efficiency in a risky market surroundings, indicating the shifting preferences of its customers. The contrasting pattern in equities and choices versus cryptocurrency buying and selling could replicate altering investor sentiment within the evolving panorama of monetary markets.
Including to those dynamics that would considerably affect future buying and selling volumes, Robinhood introduced the delisting of cryptocurrencies Solana (SOL), Cardano (ADA), and Polygon (MATIC). This choice follows latest fees by the U.S. Securities and Alternate Fee (SEC) towards Binance and Coinbase, alleging that these platforms traded unregistered securities. Given these circumstances, an additional decline in cryptocurrency buying and selling exercise on Robinhood may be anticipated.