Updated version 1 - Robinhood’s quarterly profits declined as weak cryptocurrency trading activity offset strong trading performance.

The full text has been supplemented with details.

Reuters, October 27 - Robinhood Markets (HOOD.O) reported a decline in third-quarter profit on Tuesday, as a slowdown in cryptocurrency trading weighed on the company's growth, causing its shares to drop 3.4% after hours, despite strong trading activity in other asset classes.

Since the beginning of this year, the cryptocurrency market has been under pressure due to increased volatility and ongoing capital outflows, while inflationary pressures and rising interest rates have made bonds and other traditional investments more attractive than speculative assets.

Meanwhile, geopolitical tensions in the Middle East during the quarter rattled global markets, prompting investors to adjust their portfolios and hedge risks, thereby driving increased trading activity on brokerage platforms.

Driven by strong performance in stocks, options, and prediction markets, Robinhood's trading-related revenue grew by about 19% to $867 million.

The Menlo Park, California-based company posted a profit of $476 million, or 51 cents per share, for the three months ended September 30, compared with $556 million, or 61 cents per share, in the same period last year.

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