Robinhood reports flat AUC following the recent surge in crypto trading
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With the end of the year approaching, companies are publishing reports involving different aspects of their operations, often with interesting results. Robinhood, a major US trading and investing app, which offers access to stocks, cryptocurrencies, and various other assets, recently published its report for November 2022, revealing that the returns were flat compared to the month before.
Robinhood publishes trading report for November
The report was published on Wednesday, December 7th, and a particularly interesting part was the company’s assets under custody (AUC) metric, which noted no change from October. The app’s AUC remained completely static, sitting at $70.2 billion in both months. However, compared to the same period last year, the app has seen a 35% decline, as AUC in November 2021 was at $107.5 billion.
The report published additional information involving other metrics, such as monthly active users (MAU). The MAU for October was at 12.5 million users, and the figures remained the same in November. However, compared to the MAU from November 2021, the platform once again noticed a significant decrease, this time of 33%.
However, the platform saw the net cumulative funded accounts (NCFA) grow by 0.4%, reaching 23 million, while previously being at 22.9 million in October. In other words, there was user growth while the number of active users was declining. On a YoY basis, the company saw a 1% growth in NCFA.
Crypto and options trading surge while equities plunged in November
One interesting development, however, is that despite the generally unchanging figures on a month-to-month basis and year-to-year drops, the company recorded massive growth when it came to crypto trading. In fact, the November metrics show that the volume went up from $3.5 billion in October to $5.7 billion in November, which translates to a 60% increase.
The most interesting part about this is that November figures represent an extremely sharp turn from the company’s performance in October, as far as crypto trading is concerned. The volume in October went down by 80%. Meanwhile, the company generated $14.9 billion in November 2021, so its November 2022 figures are still around 62% down from last year.
Unfortunately, some other assets did not see as much popularity. Equities, for example, went down by 4% from October, when the company marked $46.7 billion to $44.7 billion in November. Meanwhile, in November 2021, the figure was at $96.9 billion, so 2022 still saw a 54% drop.
Options, however, performed better, going up by 4% compared to October or going from 78.7 million contracts to 81.8 million in November. Still, there is also a sharp drop from one year ago, when the number of contracts was 28% higher, sitting at 113 million.
Robinhood even saw its own shares plunging to a 2-week low in November, which was its biggest one-day decline ever. However, the cause for the plunge is no mystery, and it comes after the collapse of the previously popular crypto exchange, FTX, which filed for bankruptcy on November 11th.
