Robinhood (HOOD), the favored buying and selling platform, mentioned in an announcement that its crypto revenue rose 10% versus a 12 months earlier within the fourth quarter, reaching $43 million, as extra customers traded crypto. This might bode nicely for crypto buying and selling platform peer Coinbase (COIN), the place buying and selling quantity is likely one of the key contributors of income.

The corporate mentioned in a presentation that the notional quantity of the crypto buying and selling it dealt with was up 89% in comparison with the earlier quarter resulting from extra clients putting a better volumes of trades.

The upper quantity is no surprise as costs within the digital asset market surged on optimism that spot bitcoin exchange-traded funds (ETFs) would get accepted within the U.S. (That did come to cross in January.)

Robinhood mentioned that its transaction-based revenues for the quarter had been up 8% from the earlier 12 months, primarily pushed by crypto buying and selling. Coinbase is reporting its earnings on Thursday and may even see related outcomes for its buying and selling quantity – all else being equal. COIN shares had been up barely within the post-market trading on Tuesday.

Robinhood additionally expects to win extra crypto buying and selling market share this 12 months and broaden internationally. Most lately, it started letting European Union clients commerce crypto on its platform.

“2023 was a powerful 12 months as our product velocity continued to speed up, our buying and selling market share elevated, and we began to broaden globally,” Vlad Tenev, CEO and co-founder of Robinhood, mentioned in an announcement. “And we’re off to a good higher begin in 2024, as we have already introduced in additional Funded Clients and Web Deposits by means of the primary half of Q1 than we did in all of This fall 2023,” he added.

The buying and selling platform additionally mentioned that its general fourth-quarter income was $471 million, beating the common analyst estimate of $454.7 million, based on FactSet information. In the meantime, earnings per share was $0.03, beating the estimate for a $0.01 loss per share.

The corporate’s shares rose about 15% on Tuesday after the outcomes had been launched. For the 12 months, the inventory has fallen almost 7% versus the S&P 500’s 4.4% advance.