Key Insights
- Bitstamp’s crypto trading volumes hit $14.4 billion in August, which helped it beat Robinhood for the first time.
- Robinhood’s volumes fell 18% month-over-month to $13.7 billion and continued its downtrend since late last year.
- Despite the dip, Robinhood’s platform assets reached $304 billion, supported by deposits and new product launches.
Bitstamp has overtaken Robinhood in crypto trading activity for the first time since being acquired by the U.S. trading platform.
In August, Bitstamp posted $14.4 billion in trading volume, a 21% increase from the prior month. Robinhood, by contrast, saw its crypto volumes fall 18% to $13.7 billion.
Robinhood Expands Product Offerings
Robinhood has not stood still despite the dip in crypto activity. The company has launched several new services designed to boost user engagement and extend its reach in international markets.
For example, Robinhood introduced a tokenisation-focused layer 2 blockchain for European clients, giving them access to U.S. stocks.
It also launched perpetual futures with up to 3x leverage in the EU, which is routed through Bitstamp. Finally, Robinhood recently announced artificial intelligence features and a new social media platform called Robinhood Social, which is set to debut early next year.
These moves indicate that the company is attempting to pull in more influence in both wall street and the crypto industry.
Robinhood Joins the S&P 500
Another milestone for Robinhood came this month as the company was added to the S&P 500 index. This event stood out to speculators because Robinhood was picked over MicroStrategy, despite massive expectations.
Its inclusion has now expanded the index’s exposure to crypto-linked companies, alongside other companies like Coinbase and Block. Interestingly, HOOD shares rallied more than 16% on the day of the announcement.
So far, analysts have said that Robinhood’s addition shows the ongoing connection between U.S. equity markets and the crypto industry as a whole:
A connection that is expected to deepen even further over the years.
Meanwhile, the company reported 26.7 million funded accounts alongside $4.8 billion in net deposits during August. Over the past year, total net deposits reached $61.6 billion, up 43% from August of last year..
Bitstamp’s Role in Robinhood’s Strategy
BitStamp upon its new branding by Robinhood, is now a major part of Robinhood’s plans for real-world asset tokenisation. Its institutional client base, combined with Robinhood’s retail reach, sets up the group to capture a larger share of crypto and tokenised asset trading.
Moreover, the integration with Robinhood Legend and Smart Exchange Routing makes trading between the two platforms seamless. This strengthens liquidity, while improving the scope of services offered to both retail and institutional users.
Crypto Market in August
While Bitstamp posted gains, the overall crypto market remained muted in August. Prices ended the month close to where they began, and trading volumes across the sector were flat.
Bitcoin consolidated around $114,000, while altcoins like Ethereum hovered near resistance levels. Analysts say that traders are likely waiting for macroeconomic signals, especially around U.S. interest rate policy, before making larger moves.
Despite the quiet market, several experts believe that trading activity will increase toward the end of the year, and will be driven by monetary policy changes (amid possible ETF approvals).
Outlook for Robinhood and Bitstamp
Robinhood’s purchase of Bitstamp has already changed its crypto operations by a wide margin. While Bitstamp has outperformed its parent in August, the long-term strategy ties both platforms together.
Robinhood’s inclusion in the S&P 500 has also given it some legitimacy, while Bitstamp’s institutional base has strengthened its growth prospects. Together, they represent a hybrid model of retail and professional crypto trading.
If market activity picks up later this year, both platforms could benefit. Bitstamp in particular, is expected to remain a central part of Robinhood’s international crypto ambitions.
