Robinhood Markets Inc. (HOOD) is poised to become a cryptocurrency powerhouse, according to a groundbreaking report from Bernstein. The research firm has declared the brokerage platform the “Top ‘Crypto Deregulation’ Trade,” dramatically raising its price target to $51—a 46% increase from its previous estimate of $30. This bullish prediction reflects Bernstein’s confidence in Robinhood’s ability to capitalize on anticipated shifts in cryptocurrency regulation and its already impressive growth trajectory.
This significant upward revision is fueled by Bernstein’s analysis of Robinhood’s strategic positioning and expanding product offerings. The report projects a substantial 20% increase in Robinhood’s crypto revenues by 2025, driven by new token listings and the introduction of innovative services. The firm notes that Robinhood’s conservative approach to token listings—a prudent strategy under current SEC scrutiny—will likely transform under a more crypto-friendly regulatory environment. This shift will allow Robinhood to expand its digital asset offerings significantly, incorporating popular services like staking, lending, and stablecoins.
Robinhood’s impressive year-to-date performance, with a 170% share price surge, underscores the market’s anticipation of this growth. The company’s increasing market share in crypto trading is projected to be a major driver of profitability. Bernstein forecasts earnings exceeding $1.3 billion by 2025, fueled by operating leverage from its largely fixed cost structure. This projection highlights Robinhood’s potential to generate significant returns on its investments even with the current regulatory constraints.
While currently listing 19 tokens on its U.S. platform—a smaller selection compared to competitors like Coinbase Inc. (COIN) with over 250—Robinhood is strategically positioned to rapidly expand its offerings. The report anticipates Robinhood narrowing this gap significantly as the regulatory landscape becomes more favorable to cryptocurrencies. Recent additions of tokens like Solana (SOL/USD), Cardano (ADA/USD), Ripple (XRP/USD), and PEPE (PEPE/USD) demonstrate Robinhood’s proactive approach to capturing emerging opportunities.
The Bernstein report emphasizes Robinhood’s ambitious plans to introduce a broader suite of crypto products, including valuable services such as staking and stablecoins. The acquisition of Bitstamp and its EU crypto platform further cements Robinhood’s global reach and competitive edge. This strategic move strengthens Robinhood’s presence in the ever-evolving international cryptocurrency market.
Robinhood’s robust financial performance in 2024, with assets under custody (AUC) growing over 50% year-to-date to $160 billion and a remarkable 51% month-over-month increase in crypto trading volumes for October, provides compelling evidence for Bernstein’s bullish forecast. The firm projects crypto revenues to constitute a remarkable 38% of Robinhood’s total revenues by 2025, a significant jump from the current 7%. Bernstein concludes that Robinhood is uniquely positioned to benefit from positive changes in crypto regulations, with 2025 marking a pivotal turning point for the company’s earnings growth and market dominance.
