Robinhood’s Crypto Keynote May Be a Likelihood to Purchase the Dip: Compass Level – Decrypt

When Robinhood hosts a crypto-focused keynote occasion in France on Monday, traders might have a chance to purchase the dip, funding financial institution Compass Level signaled on Friday.

Though some traders might “promote the information,” the buying and selling platform has a number of potential catalysts on the horizon, together with inclusion within the S&P 500 and a crypto enterprise that continues to flourish, Compass Level analyst Ed Engel wrote in a word.

Robinhood shares turned decrease on Friday, not too long ago falling 1.3% to $83.46, in accordance with Yahoo Finance. Yr-to-date, the agency’s inventory worth has soared greater than 120% from $39 in January. Compass level raised its worth goal to $96 from $64, reiterating a purchase score.

On Monday, Robinhood is about to “unveil next-generation crypto merchandise,” internet hosting its “first-ever worldwide and crypto-focused occasion, in accordance with an organization weblog put up. In the meantime, the Ethereum convention EthCC[8] is about to kick off in Cannes, France.

The timing of Robinhood’s occasion might be greater than a coincidence, Engel wrote. He posited that Robinhood may debut tokenized inventory buying and selling, as reported by Bloomberg Information in Could, on Ethereum or a layer-2 community like Arbitrum. If that’s the case, that might end in “increased margin buying and selling charges” for Robinhood’s self-custodial pockets, which was rolled out to European customers in late 2023.

Following steerage from the Securities and Trade Fee that crypto staking just isn’t a safety, Engel stated it will not be stunning if Robinhood made some announcement concerning customers’ potential to commit crypto tokens to a community for the flexibility to earn rewards.

In Europe, the corporate started letting customers stake Ethereum in November. They’ll additionally stake Solana, however the characteristic just isn’t accessible to customers within the U.S., whereas firms like Coinbase let customers stake as much as eight completely different cryptocurrencies in most U.S. states.

It’s probably that Robinhood pronounces new token listings, including assist for main belongings like Sui, Aptos, and Toncoin, Engel added. He stated that the corporate’s present “token listings are stale relative” to U.S. opponents, which may assist tons of of cryptocurrencies for buying and selling.

Lastly, Engel floated the chance that Robinhood introduces perpetual crypto futures, mirroring Coinbase’s efforts to introduce U.S.-regulated futures with long-dated expirations.

A Robinhood spokesperson declined to remark.

Within the second quarter, Robinhood notched $252 million in digital belongings income, barely outpacing analysts’ predictions. That represented a 100% improve from a yr in the past.

With stablecoin laws inching towards passage in each chambers of Congress, Wall Road fervor has despatched Circle’s inventory hovering following its preliminary public providing. Though Robinhood can capitalize on stablecoins by its current crypto arm, Engel stated that Compass Level analysts are usually not anticipating an announcement associated to the buzzy crypto subsector.

Edited by James Rubin