Robinhood's prediction market revenue expected to surpass crypto revenue in Q2

Odaily Odaily reported that Robinhood's prediction market platform business is growing rapidly, with Chief Brokerage Officer Steven Quirk stating the company's annual revenue run rate has reached $500 million. In the second quarter up to June 25, Robinhood saw approximately 12.3 billion event contract trades. Based on a standard fee of $0.01 per contract, the prediction market revenue for the quarter is estimated to be at least $1.23 million. Furthermore, its recently launched Rothera prediction market platform achieved over 900 million trades in its first week, contributing nearly 60% of the growth in event contract trading volume for Robinhood.

Meanwhile, due to weak institutional trading volumes, cryptocurrency trading volume has declined, with crypto revenue expected to be below $134 million in the second quarter. Prediction market revenue could potentially surpass cryptocurrency revenue as early as this quarter, becoming a higher-growth revenue stream. (artemis)