Web 3.0: How it Differs from Web 2.0 and What it Means for Businesses

Robinhood Traders Show Little Interest in Bitcoin ETFs, Opting for Direct Spot Trading Instead

According to the financial chief of Robinhood, the popular trading platform, only 5% of crypto trading on the platform is done through Bitcoin ETFs, with the remaining 95% choosing to trade directly in spot Bitcoin.

During an earnings call on February 13th, Jason Warnick, the company’s CFO, stated that the introduction of Bitcoin ETFs has not significantly impacted spot trading, with most traders viewing it as an additional option rather than a replacement. He also noted that some users have added ETFs to their retirement accounts, contributing to the overall increase in ETF trading on the platform.

Since the launch of 10 new spot Bitcoin ETFs on January 11th, they have collectively accumulated over $10 billion in assets under management. This has coincided with a 6.5% increase in Bitcoin’s price, reaching a high of $50,000 on February 12th, the highest it has been in over two years.

Despite the buzz surrounding web 3.0, which promises to revolutionize the internet and its capabilities, it seems that Robinhood traders are still more interested in traditional spot trading rather than exploring this new technology. It remains to be seen how web 3.0 will impact the business world, but for now, it seems that web 2.0 and web 3.0 are still quite different in terms of adoption and usage.

Robinhood crypto revenue sees significant growth, surpassing expectations

Robinhood experienced a surge in revenue for Q4 of 2023, largely driven by increased profits from cryptocurrency transactions. The company exceeded predictions from financial analysts and saw a 10% increase in stock price during after-hours trading.

For the full year of 2023, Robinhood reported a total revenue of $1.87 billion, a 37% increase from the previous year. Q4 specifically saw a revenue of $471 million, a 24% rise from the same period in 2022, surpassing Zacks analyst estimates by over 3%.

The rise in total Q4 revenue was primarily attributed to a surge in cryptocurrency trading revenue, which reached $43 million, a 10% increase from the previous year.

In their earnings presentation, Robinhood revealed that their notional cryptocurrency trading volume in Q4 had increased by 89% compared to Q3, due to a growth in customer base and overall trade volume.

On February 13, Robinhood’s shares closed with a 1.5% decrease, but saw a 10.5% rise to over $13 during after-hours trading, according to Google Finance.

Despite a 4% decrease in share price compared to the S&P 500’s 4.5% gain, Robinhood’s year-to-date share price has struggled, currently down by 78% from its all-time high of $55 on August 6, 2021.

Key Questions: How can Bitcoin payments make a comeback?