Throughout a pointy pullback in crypto-related names, Ark Make investments ramped up its publicity to robinhood inventory, turning it right into a flagship holding regardless of weak quarterly outcomes.
Ark Make investments ramps up its Robinhood wager
Robinhood (HOOD) shares dropped about 9% on Wednesday after This fall income missed analyst forecasts, extending a shedding streak that has weighed on sentiment. Nonetheless, Ark Make investments used the downturn to build up practically $50 million in inventory, underscoring its conviction within the buying and selling platform’s long-term technique.
The asset supervisor purchased $33.8 million price of Robinhood in the course of the selloff, a transfer that coincided with a quick Bitcoin dip under $66,000 and broad promoting throughout crypto-linked shares. Furthermore, Ark added about $16 million in different digital-asset-related names, together with change operator Bullish and USDC issuer Circle.
These recent purchases pushed Robinhood to the most important crypto-exposed place within the flagship ARK Innovation ETF, with holdings now price roughly $248 million. That stake represents a couple of 4.1% weighting within the fund, putting the brokerage forward of different high-conviction expertise performs.
This fall miss and shift past retail buying and selling
Robinhood reported This fall outcomes that fell in need of income expectations, primarily as a result of cryptocurrency buying and selling volumes dropped sharply. That mentioned, the corporate has been attempting to scale back its dependence on retail buying and selling charges by leaning into new strains of enterprise and deeper engagement with digital property.
Regardless of the setback, administration has highlighted a rising pipeline of initiatives aimed toward diversifying income. Furthermore, executives are emphasizing merchandise that enchantment to each institutional purchasers and superior merchants, at the same time as informal buying and selling exercise stays subdued.
Robinhood Chain and blockchain ambitions
One key initiative is Robinhood Chain, a permissionless Layer 2 blockchain that just lately entered testnet. The Robinhood chain testnet launch targets tokenized real-world property and institutional monetary providers, signaling a shift from a pure retail buying and selling app towards a broader infrastructure supplier.
The chain is designed to help high-throughput transactions and complicated monetary contracts whereas integrating with the prevailing Robinhood ecosystem. Nonetheless, success will depend upon attracting builders, liquidity suppliers and institutional companions in an more and more aggressive Layer 2 panorama.
Market backdrop: ETF outflows and cautious sentiment
On the identical Wednesday, U.S. spot Bitcoin ETFs recorded internet outflows of $276.3 million, dragging complete property beneath administration right down to $85.7 billion. This marked the bottom stage since late 2024, highlighting how institutional curiosity has cooled after a robust preliminary section of inflows.
Bitcoin later stabilized round $67,200, however skilled patrons remained cautious and plenty of buyers stayed on the sidelines awaiting clearer macro and regulatory alerts. Furthermore, the ETF outflows added to strain on listed crypto platforms, together with Robinhood, as merchants reassessed danger publicity.
Prediction markets emerge as a development engine
CEO Vlad Tenev has recognized prediction markets as a possible new development pillar for the dealer. He described them as a coming “supercycle” that might finally help trillions of {dollars} in annual buying and selling quantity if adoption accelerates throughout asset lessons and geographies.
Robinhood‘s prediction markets enterprise has already proven speedy traction. Its quantity greater than doubled in This fall, contributing to $12 billion in contracts traded throughout full-year 2025. In early 2026, the corporate processed round $4 billion in extra contracts, suggesting rising consumer engagement.
The agency is constructing its personal platform via a prediction markets three way partnership with market maker Susquehanna Worldwide Group. That construction ought to give Robinhood larger management over contract design and listings, whereas probably delivering larger margins than merely routing purchasers to present exchanges.
The in-house prediction market is anticipated to launch later this yr and can compete with established gamers comparable to Kalshi and Polymarket. Nonetheless, successful share from incumbents would require a compelling consumer interface, regulatory readability and enticing liquidity incentives.
Upcoming Take Flight occasion and product roadmap
Robinhood plans to share extra particulars on its blockchain and prediction market initiatives at its “Take Flight” occasion scheduled for March 4. The presentation will probably spotlight new merchandise, platform enhancements and extra use instances constructed round its Layer 2 infrastructure.
Market individuals can be looking forward to updates on how these initiatives can help earnings development after the latest income miss. Furthermore, readability on timelines and monetization may form how buyers worth the corporate’s enlargement past legacy retail brokerage providers.
Analyst scores and share efficiency
Wall Road analysts presently preserve a Robust Purchase consensus on Robinhood, primarily based on 14 Purchase scores, three Holds and zero Sells up to now three months. The typical 12-month worth goal stands at $135.79, implying roughly 56.9% upside from present ranges if forecasts show correct.
Even so, shares have struggled in 2026. Following the newest drop, Robinhood has misplaced practically one-third of its worth year-to-date, reflecting investor issues about slowing retail volumes and regulatory uncertainty. The latest Ark Make investments robinhood buy, nevertheless, alerts that a minimum of some institutional buyers see the pullback as a chance moderately than an enduring structural decline.
Strategic outlook
For long-term buyers, the trajectory of robinhood inventory will probably hinge on execution in prediction markets, blockchain infrastructure and institutional providers. If these initiatives scale, they might step by step offset cyclical weak point in conventional buying and selling.
In abstract, Robinhood faces a difficult near-term backdrop however is repositioning itself as a diversified fintech and crypto infrastructure participant. That mentioned, realization of its bold roadmap can be essential to justifying present analyst targets and restoring market confidence.