Webull CEO cites 300% crypto order spike after PDT rule repeal

Robinhood Markets shares rose 7% to $110.97 and Webull climbed 4% to $8.86 on Tuesday, following a report by Webull CEO Anthony Denier that retail buy orders for major cryptocurrencies increased by nearly 300% since the June 4 repeal of the pattern day trader rule.

Denier told CNBC that the surge in order flow for Bitcoin and Ethereum has significantly boosted Webull's trading volumes. The old pattern day trader rule required a minimum equity of $25,000 for accounts making four or more day trades within five business days. With the average Webull account holding approximately $5,500, the regulation previously restricted most of the platform's users from unrestricted day trading. The repeal removed this barrier, unlocking a larger cohort of active traders.

The revenue impact is visible in Webull's financials. The company reported Q2 2026 revenue of $198.83 million, exceeding the consensus estimate of $182.83 million. Trading-related revenue increased 66% year over year to $147.7 million, while daily average revenue trades reached a record 1.6 million. Denier attributed this lift directly to the rule change, noting that revenue jumped from $160 million in Q1 to nearly $200 million in Q2, driven largely by the single month of June when the restriction was lifted.

Market participants are distinguishing between the movement in broker stocks and the underlying asset prices. Bitcoin is trading at $79,377.30, up only 0.4% over the past 24 hours, while Ethereum sits at $2,475.16, down 0.5%. In contrast, the ARK Blockchain & Fintech Innovation ETF gained 2% to $46.45, and the iShares Bitcoin Trust ETF rose 0.6% to $44.92. The disparity highlights that fintech brokers are capturing a trading-volume premium that pure spot Bitcoin funds are not reflecting in their price action.

Robinhood's move is largely a read-across from the Webull interview, as the company has no specific catalyst today. However, its Q2 2026 earnings already showed transaction-based revenues up 44% to $776 million, with equities revenue rising 95% and net deposits hitting a record $22 billion. CEO Vlad Tenev described the core business as "humming." Similarly, Interactive Brokers Group reported Q2 2026 customer accounts up 34% year over year, reinforcing the trend of increased activity among retail investors.

The rally comes after mixed performance for both stocks earlier in the year. Robinhood shares were down 8% year to date through Monday's close, while Webull stock was up 10% over the same period. Investors are now watching whether Robinhood can hold above the $110 level and if the surge in crypto orders reported by Denier will persist into Webull's Q3 results.