Trading activity across equities, options, and cryptocurrencies slowed in November, raising concerns that retail investor momentum may be waning.
Crypto market weakness contributed to Robinhood’s (HOOD) disappointing results. The brokerage reported $28.6 billion in crypto trading for November, down 12% from October’s $32.5 billion and 19% lower than the same month last year, when crypto surged following Donald Trump’s election victory. Bitstamp, the crypto exchange Robinhood plans to acquire, also saw an 11% drop in volumes.
Equity trading volumes fell 37% month-over-month to $201.5 billion, though they were 37% higher than a year ago. Total platform assets declined 5% to $325 billion.
The slowdown has fueled concerns that the recent surge in retail trading may be cooling. For a company heavily reliant on transaction-based revenue, declining volumes across equities, options, and crypto could weigh on earnings.
Robinhood shares fell 8% on Thursday but remain up 216% year-to-date.
