According to a recent research report by Bernstein, Robinhood is expected to be the biggest beneficiary of regulatory tailwinds from a potentially pro-crypto U.S. Securities and Exchange Commission (SEC) under a Donald Trump administration.
The broker raised its price target for the popular trading platform to $51 from $30 while maintaining its outperform rating on the shares. This move is seen as a positive development for Robinhood, which has been operating a “regulatory-constrained crypto business” and has listed only 19 cryptocurrency tokens to date.
Analysts led by Gautam Chhugani noted that under a potentially new pro-crypto SEC, Robinhood’s business is set to change, and the company is expected to drive higher revenues by listing new tokens and introducing new crypto product lines to target the wider opportunity.
Robinhood’s acquisition of Bitstamp and its European platform is also expected to “further boost value added crypto services,” as exchanges can offer staking, stablecoin access, and lending.
This news comes on the heels of Robinhood adding solana (SOL), pepe (PEPE), cardano (ADA), and XRP (XRP) to its platform following Trump’s win in the U.S. presidential election.
Predictions:
Based on this development, we can expect Robinhood’s stock to continue to rise as the company benefits from a more favorable regulatory environment. Additionally, we can expect to see increased adoption of cryptocurrencies as more mainstream platforms like Robinhood offer easier access to these assets.
As the crypto market continues to evolve, we can expect to see more institutional investment and mainstream adoption. This, in turn, could lead to increased prices for cryptocurrencies and a more stable market.
Overall, the news from Bernstein is a positive development for the crypto market, and we can expect to see continued growth and adoption in the coming months.
Quote from the article: “But under a potentially new pro-crypto SEC, this looks set to change, and we expect HOOD to be the biggest beneficiary of crypto regulatory tailwinds,” analysts led by Gautam Chhugani wrote.
Source: Robinhood Is the Top Crypto Deregulation Trade, Bernstein Says
