Robinhood Says Prediction Markets Are Growing as Crypto Trading Revenue Declines

Robinhood said its prediction markets business is expanding quickly, with Chief Brokerage Officer Steven Quirk stating the company’s annualized revenue run rate has reached $500 million. According to Odaily, during the second quarter through June 25, Robinhood’s active contract trading volume totaled about 12.3 billion contracts. Based on a standard fee rate of $0.01 per contract, Robinhood’s prediction market revenue for the quarter is estimated to be at least $1.23 million. Odaily reported that Robinhood’s recently launched Rothera prediction market platform recorded more than 900 million trades in its first week, contributing nearly 60% of the increase in active contract trading volume. At the same time, Robinhood’s cryptocurrency trading volume declined amid weak institutional trading activity, and second-quarter crypto revenue is expected to be below $134 million. Odaily said prediction market revenue could surpass cryptocurrency revenue as soon as this quarter and become a faster-growing revenue source.