Robinhood’s Bitstamp Deal Is Strategic and Brings Added Institutional Exposure: Bernstein

The Bitstamp acquisition is a strategic move by Robinhood to expand its crypto business, the report said.

Bernstein said that by acquiring an exchange the trading platform can offer markets in many more tokens.

JMP said it doesn't expect material accretion from the deal.

“With a full exchange, HOOD gets access to global liquidity, and thus can offer the liquidity to its own broker platform, potentially improving its economics,” analysts Gautam Chhugani and Mahika Sapra wrote.

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