Crypto exchange Gemini reported its lowest quarterly retail trading volume in three years for Q3: $600 million, down 14% from the second quarter. Total spot volume still rose 18%, to $4.5 billion, because institutional clients pulled it up.
What the report shows
According to Gemini's earnings report, institutional volume climbed 26% to $3.9 billion. The company credited institutional Zcash activity and expanded affiliated market-making. It did not give a reason for the drop in retail trading.
Exchange revenue added 7% to $13.4 million, as institutional revenue more than doubled. Retail traders remain the biggest source of income, bringing in nearly three-quarters of exchange revenue. Total quarterly revenue at Gemini fell to $41 million, The Block reported.
Prediction markets and the stock
Gemini's own event exchange, Gemini Predictions, softens the dip a little. Its revenue grew 52% to $796,000, but that is not enough to offset declines elsewhere. The company said average daily traders in October ran about 50% above the third-quarter average.
After the report, Gemini shares rose more than 6% in after-hours trading. They are still down about 75% since the start of the year.
Sale of the European business
According to CoinDesk, Gemini sold its UK and European operations to KAST, a stablecoin payments firm, for under $10 million. The deal is part of a restructuring in which the exchange is pulling back from several overseas markets.
Separately, the company is looking for new ways to distribute its event contracts. A nonbinding August agreement with Apex Fintech Solutions would make Gemini Titan the exclusive venue for crypto event contracts that Apex offers to customers of its futures brokerage. No definitive agreements have been signed yet.
How other exchanges look
Gemini is not alone in seeing softer trading last quarter. Other crypto exchanges also posted weaker results.
- Coinbase consumer spot volume fell 9% to $23.4 billion.
- Coinbase CFO Alesia Haas said growth in prediction markets partly offset softer crypto trading.
- Robinhood crypto revenue fell 55% year on year to $120 million, while event-contract revenue rose sixfold to $173 million.
On Friday Bitcoin traded below $70,000.
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