Robinhood shares rose 7% and Webull gained 4% as executives reported a surge in retail cryptocurrency buying after the pattern day-trader rule was repealed.
Robinhood and Webull shares rose as retail crypto trading increased following the repeal of the pattern day-trader rule, Yahoo Finance reported.
Robinhood stock gained 7% to $110.97, while Webull rose 4% to $8.86. Webull Chief Executive Officer Anthony Denier told CNBC that buy-side orders for major crypto assets had increased by almost 300% over the previous week and a half.
The rule previously required accounts making four or more day trades in five business days to hold at least $25,000 in equity. Its repeal on June 4 expanded access for smaller accounts.
Bitcoin was up about 0.4% over 24 hours near $80,000, while the ARK Blockchain and Fintech Innovation ETF rose 2% and the iShares Bitcoin Trust ETF gained 0.6%. The move highlights how brokerages can benefit from transaction activity even when the underlying asset’s price is little changed.
