Robinhood Markets Inc. achieved a record net income of $157 million and a 40% increase in revenue in Q1 of 2024.

The surge was largely driven by a 232% increase in cryptocurrency trading and a 44% rise in equities revenue.

The company experienced a significant influx of new accounts and capital, with 500,000 new accounts and record deposits totaling $11.2 billion.

Cryptocurrency custody soared with $26 billion in assets, marking a 78% increase from the previous quarter and a 230% revenue rise year-over-year.

Transaction-based revenues climbed by 59%, predominantly fueled by the crypto sector.

Spot Bitcoin ETF approvals in January 2024 contributed to the growth in the value and investment in cryptocurrencies.

A Wells notice from the SEC introduces potential regulatory challenges regarding token trading on Robinhood's platform.

Despite the SEC notice, analysts are optimistic, leading to a 40% increase in Robinhood's share price this year, and a 7% rise in post-market trading following the earnings report.

CEO Vlad Tenev remains upbeat about the company's outlook, citing April as the strongest month for net deposits and gold subscriber growth.