Robinhood Crypto Trading Volume Drops 48% as Event Contracts Surge

Robinhood reported a substantial shift in user activity during October, as trading volume on the Robinhood crypto platform fell by nearly half compared to the previous year. According to the company's preliminary and unaudited monthly update, customers traded $17 billion in digital assets throughout the month. This represents a 21% decrease from September and a 48% drop from October 2025, when notional volume reached $32.5 billion. The figures encompass activity on both the flagship application and Bitstamp, the exchange acquired by the company last year.

Robinhood crypto trading volume fell 48% in October while event contract usage more than doubled.

A contrast in market trends

While digital asset activity cooled, the company's prediction markets business experienced significant growth. Customers traded 5.9 billion event contracts in October, a 136% increase from the 2.5 billion traded during the same period last year. These contracts allow users to wager on outcomes related to sports, economic data, and political events, including the final weeks leading up to the November 3 midterm elections. Average daily volume for these contracts reached 190 million.

The decline in digital asset engagement mirrors a broader trend among retail traders. Bitcoin, which concluded September near $83,500, faced downward pressure throughout October, eventually slipping below $70,000 for the first time since August. This retreat has been accompanied by a cooling in institutional demand, evidenced by six consecutive days of net outflows from U.S. spot bitcoin exchange-traded funds as of Thursday.

Despite the slump in crypto-related revenue, other areas of the brokerage showed resilience. Equity notional volume rose to $325 billion, a 2% year-over-year increase, while options contracts grew by 8% to 289 million. The platform also saw its funded customer base grow by approximately 130,000, reaching a total of 28.9 million users. Total platform assets stood at $383 billion, marking a 12% increase compared to the previous year, even as they slipped 3% month-over-month.

Why it matters

The divergence between crypto trading and prediction markets highlights shifting retail investor priorities amid macroeconomic uncertainty and regulatory scrutiny. As Robinhood continues to expand its global footprint, including securing a license in Dubai for future operations, the company’s reliance on transaction-based revenue remains a key focus for investors. The growth of prediction markets has also drawn attention from lawmakers, with potential regulatory crackdowns on election betting platforms looming in the upcoming legislative session.