Bucking the momentum in the crypto industry, Robinhood’s digital assets trading revenue dropped 36% in the second quarter, the online brokerage said Wednesday.
The fintech company reported $160 million in crypto revenue, a significant drop from the $252 million recorded in the previous quarter.
The performance was a blemish on an otherwise a strong second quarter for the fintech company, with its net revenue rising 6.5%, to $989 million.
Robinhood’s crypto results appeared to stem from the market’s struggles in the early part of the quarter and muted retail investor engagement.
Even as crypto prices rebounded to hit all-time highs in the second quarter, Robinhood’s trading volume fell 39%, to $28 billion, from the first quarter.
In June, the company bet on the growth of tokenisation even though CEO Vlad Tenev has said Robinhood planned to diversify its revenue streams beyond crypto.