The impact of Trump’s victory on Robinhood’s market cap, boosting it by 45% to surpass $45bn
In the wake of a Trump administration, crypto regulation is expected to be eased, with analysts predicting that Robinhood will emerge as the primary beneficiary of this new environment.
According to Bernstein analysts, a Donald Trump presidency is anticipated to drive up Robinhood’s revenue as the trading platform can now expand its crypto offerings due to more favorable regulation. Previously, under the leadership of Gary Gensler, a known crypto-skeptic, the Securities and Exchange Commission had limited the crypto products available on the platform. However, with a potentially pro-crypto SEC, Bernstein believes that Robinhood will see significant gains as the platform can now capitalize on “crypto regulatory tailwinds.”
With promises of pro-crypto policies, such as establishing a national Bitcoin reserve, and a more crypto-friendly Congress, the industry is hopeful for tailored regulations for crypto. Bernstein has revised Robinhood’s revenue projections for 2025, forecasting a rise to $4.19 billion from $3.85 billion. This adjustment is driven by the expectation that Robinhood will be able to list more tokens and introduce additional crypto-related products like stablecoins and staking.
Furthermore, the analysts have raised the target share price for Robinhood from $30 to $51. Currently trading at $35 under the ticker HOOD, Bernstein’s prediction hints at a potential market cap exceeding $45 billion.
Robinhood is just one of the many financial services firms venturing into the crypto space. Other examples include UK neobank Revolut, as well as payment companies PayPal and Stripe.
To adhere to SEC regulations, Robinhood had previously listed only 15 tokens, in contrast to competitor Coinbase’s 250-plus offerings. However, since the recent elections, Robinhood has added four more tokens – Solana, Cardano, Ripple, and Pepe.
Despite past constraints, including the avoidance of services like staking and stablecoins, which were discouraged by the Gensler-led SEC, Robinhood has shown strong performance in key metrics, with crypto revenues growing by 160% year on year.
Looking ahead, Bernstein expects Robinhood to list more tokens, introduce new crypto product lines, and continue expanding into the EU and UK to capture additional market share. Already, Robinhood has launched Solana staking in the EU and is part of a consortium launching a new dollar-pegged stablecoin.
With acquisitions like the $200 million purchase of Bitstamp and the addition of an EU crypto platform, Robinhood is well-positioned to enhance its value-added crypto services.
In the crypto market, Bitcoin has risen 1.3% in the past 24 hours to around $93,700, while Ethereum has dropped 1.2% to $3,100 over the same period. As the industry continues to evolve, reaching out to the author at joanna@dlnews.com can provide further insights.
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