Bernstein has initiated coverage of the trading platform Robinhood (HOOD) with an outperform rating and a target price of $30.
The brokerage firm predicts that the total market capitalization of cryptocurrencies will nearly triple by 2025, reaching $7.5 trillion.
It stated that the managed assets of bitcoin spot ETFs could climb to $300 billion by 2025.
Bernstein initiated coverage of Robinhood's stock (HOOD) with an above-average rating and a price target of $30, citing the massive potential for growth due to a huge crypto cycle, as stated in its Thursday research note.
"We expect the total market cap of cryptocurrencies to reach $7.5 trillion by 2025 compared to today's $2.6 trillion, which should mean a ninefold increase in Robinhood's crypto revenues," the report says. The company announced that the volume of cryptocurrency trading on its platform increased by 10% in February from January.
Bernstein expects the market capitalization of Bitcoin (BTC) to reach $3 trillion by 2025, Ethereum (ETH) to $1.8 trillion, and other leading blockchain tokens to collectively hit $1.4 trillion.
"We believe the crypto market is in the midst of unprecedented institutional adoption," wrote analysts Gautam Chhugani and Mahika Sapra. The managed assets of spot Bitcoin exchange-traded funds (ETFs) could rise to $300 billion by 2025. Ether ETFs are expected to be available within 12 months.
The brokerage views Robinhood as a two-year cyclical trade, "which aligns with the bend in crypto-driven revenues in 2024-25."
Robinhood's stock price increased by more than 10% in after-hours trading.
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