Declining trading activity across equities, options, and cryptocurrencies in November has raised concerns that retail investor momentum may be slowing.
Crypto market weakness contributed to Robinhood’s (HOOD) disappointing volumes. 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 after Donald Trump’s election victory. Bitstamp, the crypto exchange Robinhood plans to acquire, also saw volumes fall 11%.
Equity trading volumes dropped 37% month-over-month to $201.5 billion but remained 37% higher than a year ago. Total platform assets fell 5% to $325 billion.
The slowdown has sparked concern that the recent boom in retail trading may be cooling. For a company dependent on transaction-based revenue, weaker activity across equities, options, and crypto could weigh on earnings.
Robinhood shares fell 8% on Thursday, though they are still up 216% year-to-date.
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