Two
publicly traded retail trading platforms heavily reliant on cryptocurrency
trading revenue saw their stock prices continue a sharp descent today (Thursday),
with Robinhood and eToro each extending multi-session losing streaks as Bitcoin
crashed to its lowest level since October 2024.
HOOD closed
at $75.67 on Thursday, marking its eighth consecutive day of losses and
representing a decline of nearly 10% for the session. The stock hit its lowest
level since June 2025, with the extended selloff erasing gains accumulated
during the late-2025 crypto market rally.
ETOR fared
similarly, dropping approximately 7% Thursday to close just below $26.54 in its
seventh straight losing session. The Israeli-founded trading platform, which
debuted on Nasdaq in May 2025 at $69, has now shed more than 60% of its value
since its public market launch.
Bitcoin Plunges in
Sharpest Single-Day Drop in Over a Year
The stock
declines tracked Bitcoin’s dramatic collapse Thursday, with the cryptocurrency
falling to $63,500 during the session, marking its lowest point since October
2024. The selloff accelerated throughout the day, with Bitcoin ultimately
dropping more than 13% in one of its sharpest single-day percentage declines in
at least 15 months.
The broader
crypto market capitalization fell 6.4% in 24 hours to $2.49 trillion, with 92
of the top 100 digital assets posting losses. Bitcoin has now dropped 44% from
its October peak, erasing more than $800 billion in market value.
The selloff
extended to Coinbase, the largest U.S. cryptocurrency exchange, which fell more
than 13% Thursday to close around $152.44, testing levels not seen since April
2025. Coinbase marked its eighth consecutive session in the red, directly
tracking the cryptocurrency market’s steep decline.
Revenue Concentration
Creates Vulnerability
The three
platforms share a common weakness: substantial dependence on cryptocurrency
trading for revenue generation. eToro’s crypto
reliance proved particularly acute in recent quarters, with digital assets contributing 91% of total
revenue in Q2 2025 when crypto markets surged.
For the
full year 2024, cryptoassets accounted for almost 40% of eToro’s $931 million
in commission revenue, though the company’s crypto dependency fluctuates
dramatically with market conditions.
“For
many investors, shares of companies like eToro and Robinhood are indirect
exposure to cryptocurrencies on the stock market, and the strong dependence of
their financial results on the fate of cryptocurrencies means that we are
witnessing situations like this,” Arkadiusz Jóźwiak, analyst and crypto
educator from Comparic.pl, explained to FinanceMagnates.com.
Robinhood
showed somewhat more diversification but still faces significant crypto
exposure. Cryptocurrency revenue reached $268 million in Q3 2025, representing
approximately 20% of the company’s $1.27 billion total revenue, with a 339%
year-over-year increase.
The platform’s
chief investment officer recently warned that retail net buying activity has
slowed following a late October surge, raising concerns about sustained trading
volumes.
Bull Market Boom Now
Reversing
Both
platforms experienced explosive crypto revenue growth during 2024’s digital
asset rally. eToro’s commission revenue jumped 48% year-over-year in 2024, with
over 25% of that growth concentrated in Q4 alone as Bitcoin surged. Net profit
skyrocketed to $192 million from just $15.3 million in 2023, driven primarily
by crypto trading activity.
Robinhood’s
Q4 2024 cryptocurrency revenue of $358 million represented a 700%
year-over-year increase, surpassing options trading revenue for the first time
in company history. For full-year 2024, Robinhood generated $2.95 billion in
total revenue, up 58%, with crypto contributing 21%.
“When
Bitcoin rises, everyone is happy and company shares also rise, but when it
falls, sentiment automatically changes. It is not certain that if Bitcoin
continues to fall, Robinhood and eToro will not follow it further down,”
Jóźwiak added.
This article was written by Damian Chmiel at www.financemagnates.com.
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