- The popular retail investment app gets the majority of its transaction revenues from trades outside of crypto.
- That will be flipped this year, wrote Bernstein analysts.
Robinhood’s bonanza earnings report last week encouraged Bernstein analysts to almost double their price prediction for the retail-focused trading platform, to $105 a share.
Now, Bernstein is predicting the retail-focused trading platform’s crypto revenue will explode this year and the next.
“We expect the crypto bull cycle to now extend into 2026,” Bernstein wrote, helped by stablecoins and tokenised securities.
Bernstein points out that non-crypto trading — equities, options, and the like — accounted for 60% of total transaction revenue at the company, with crypto transactions making up the remaining 40%.
Bernstein predicts those numbers will flip this year and next, and that crypto trading volume on the platform will triple by 2026 compared to last year.
The research firm also sees Robinhood’s broader offerings derisking the company from crypto’s extreme volatility.
Bernstein analysts echo those at Morgan Stanley, who in January said a more favourable US regulatory regime will empower Robinhood to “participate more aggressively” and further unlock crypto revenues.
“We want to be kind of the on-ramp to the crypto world,” Johann Kerbrat, the general manager of Robinhood’s crypto arm, told DL News in December.
Andrew Flanagan is a Markets Correspondent for DL News. Got a tip? Reach out to aflanagan@dlnews.com.