Robinhood, E*trade go two different directions on crypto

After the crypto revenues are dipped in the first quarter, Robinhood resigns from the trade in digital assets. In the meantime, E*Handel is planning to improve its crypto services. The divergence seems to reflect the different customer base that every company serves.

Robinhood has long been a popular platform for retail, but the crypto-related turnover for the first quarter of 2025 decreased to $ 252 million, which decreased by about 30% compared to the previous quarter. During the same period, the crypto trade volume at Robinhood decreased by 35%.

The turnover of cryptocurrency is currently making transactions to more than 43% of Robinhood overall. During a recent result, however, CEO Vlad Tenev said that the company wants to scale its digital assets across all recruiters in order to avoid such corporate fluctuations.

“We diversify business outside of the crypto business, which makes us less dependent on crypto transaction volumes,” said Tenev during the call.

A wealthy customer base

At the same time, Morgan Stanley is investigating paths to give his e* trading platform with the crypto trade -as the most serious step of a large US bank to grant retail users direct access to cryptocurrencies. The initiative is expected to be triggered at some point next year.

Why the two different approaches for the competing trading platforms? It depends on the customer base.

“Robinhood depends heavily on retail trade, so her income is very volatile,” said Joel Hugentobler, cryptocurrency analyst at Javelin Strategy & Research. “Depending on the crypto prices, the volume can vibrate dramatically from month to month. You want to stabilize your income with consistent streams. I also think that Robinhood has initially triggered your product in Krypto.

“Morgan Stanley has much higher net assets than Robinhoods mainly retail customer base,” he said. “People with a high network value would like to have safe access to crypto. With the regulatory tailwind we have seen, investors with high network work expect to grow to be token in the coming months.”

Heated competition

The entry of the big banks in the trade with crypto could be another factor for Robinhood's latest withdrawal. Other important financial institutions, including Charles Schwab and Sofi, have also examined entry into the crypto room.

E*Handel already offers its wealthier customers access to crypto-change-necked funds, options and futures contracts.