Robinhood’s Crypto Keynote: Potential Catalysts and Analyst Views
Despite analysts suggesting Robinhood’s Monday crypto-focused keynote event in France could trigger a “sell the news” narrative, investment bank Compass Point highlighted several potential catalysts for the trading platform.
Analyst Ed Engel noted rising shares, a pending S&P 500 inclusion, and a thriving crypto business increasing the likelihood of buying dips ahead of the event. Robinhood shares were trading lower Friday but are up over 120% YTD; Compass Point raised its price target to $96 and reiterated a buy rating.
Potential Event Highlights
- “Next-generation crypto products”
The timing of the event draws comparison to potential announcements of tokenized stock trading on Ethereum or layer-2 networks like Arbitrum, although this might pose margin risk via Robinhood’s self-custodial wallet. Crypto staking announcements, feasible post-SEC guidance, or new token listings (including Sui, Aptos, and Toncoin) are also seen as possibilities.
Engel also floated the introduction of perpetual futures, referencing Coinbase’s regulatory path, as a potential possibility.
Stablecoins Likely Not a Focus
Analysis suggests Robinhood is unlikely to leverage current stablecoin legislative excitement or make significant related announcements, unlike Circle (USDT issuer) which preceded its IPO.
Recent Q2 results showed Robinhood’s digital assets revenue on a solid growth trajectory.
