Robinhood to Benefit From ‘Monster’ Crypto Cycle, Initiated Outperform by Bernstein
Total crypto market cap is expected to almost triple to $7.5 trillion by 2025, the report said.
Mar 14, 2024 at 8:44 a.m. UTC
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- Bernstein initiated coverage of Robinhood (HOOD) with an outperform rating and $30 price target.
- The broker expects total crypto market cap to grow almost threefold to $7.5 trillion by 2025.
- It said bitcoin spot ETF assets under management could climb as high as $300 billion by 2025.
Bernstein initiated coverage of trading platform Robinhood (HOOD) with an outperform rating and a price target of $30, citing a "monster" crypto cycle as the reason for the bullish call, the broker said in a research report Thursday.
“We expect total crypto market cap to reach $7.5T by 2025 versus $2.6T today,” and this means Robinhood crypto revenue should grow ninefold, the report said. The company said Wednesday that crypto trading volume on its platform rose 10% in February from January.
“We believe the crypto market is amidst unprecedented institutional adoption,” analysts Gautam Chhugani and Mahika Sapra wrote. Spot bitcoin exchange-traded fund (ETF) assets under management may surge to as high as $300 billion by 2025. It expects an ether ETF to become available within 12 months.
The broker views Robinhood as a two year cyclical trade, “riding the crypto-led earnings inflection over 2024-25.”
Robinhood shares rose over 10% in after-hours trading.
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Will Canny is CoinDesk's finance reporter.