We recently published a list 12 Crypto Stocks With the Biggest Upside Potential. In this article, we’ll take a look at where Robinhood Markets, Inc. stands. (NASDAQ:HOOD) versus the other cryptocurrency stocks with the most upside potential.
On December 16, Bitcoin reached an all-time high, rising above $107,000 as investors anticipate a rate cut by the Federal Reserve later in the week. The two-day policy meeting is scheduled to conclude on December 18, and investors expect the Fed to cut interest rates. According to CME’s FedWatch forecast, there is a 96% chance of a 25 basis point rate cut. This is expected to materialize as a positive trend for Bitcoin. Since Bitcoin is often traded like technology stocks, it has the basis to benefit from low interest rates.
In addition, lower interest rates imply an increased money supply and a weaker dollar. Each of these events has shown long-term correlations with Bitcoin. According to CNBC, Bitcoin is up 52% since the US presidential election and 149% for 2024. The incoming Trump administration is expected to have a friendly regulatory environment and possibly create a National Strategic Reserve for Bitcoin. This has been a strong catalyst for Bitcoin and cryptocurrencies in general.
Bitcoin ETFs, launched in January 2024, were one of the biggest drivers of volume among institutions this year, closing the year with a collective market capitalization of more than $100 billion. On December 17, Todd Ruff of Autonomys appeared on CNBC to discuss the performance of Bitcoin ETFs in 2024 and their potential outlook in 2025. Ruff opined that the adoption trends the industry has seen at the institutional level have been impressive. These trends have been amplified by supply-side declines with the Bitcoin halving. This, by far, exceeded expectations. Comparisons are being made with gold, which has far surpassed it. The acceleration is expected to continue until 2025.
The collective Bitcoin holdings of US ETF issuers recently surpassed the supposed holdings of Satoshi Nakamoto. U.S. spot Bitcoin ETFs are now collectively the largest holders of Bitcoin, reflecting the idea of institutions holding Bitcoin. According to CNBC, the 12 existing Bitcoin ETFs led one of the most successful ETF launches in history after launching in January, collectively surpassing $100 billion in assets under management. These funds now contain just over 1.1 million Bitcoins, which translates to approximately 5% of the total Bitcoins in existence. This number exceeds the supposed holdings of the legendary pseudonymous founder Satoshi Nakamoto, who is believed to own up to 1.1 million Bitcoin.
Satoshi Nakamoto’s wallets have always been considered the Bitcoin industry’s Fort Knox, Roof said. Seeing ETFs exceed this level en masse has been an amazing trend in the industry. Roof believes that the industry has so far benefited from some big names, with major players in the industry bringing trust and credibility to the world of cryptocurrencies. However, with the expected change in the SEC and expected regulatory loosening, Rove does not believe that regulators are ready to give up and allow anything to happen in the cryptocurrency space. There is still a lot of work to be done in this industry.
Looking at the forecast for 2025, Roof said that big players in the cryptocurrency industry bring great reputation to the field, giving people a perception of legitimacy and competent management of investors. In his opinion, this will attract the majority of investment. Small players will have difficulty competing due to various factors, such as the inability to compete with inflows. As the market becomes crowded and saturated, conditions may lead to consolidation. Some underperforming ETFs will likely continue to struggle for market share, ultimately leaving them with no other choice but to merge with another institution.
Rove also believes there is nothing to worry about Bitcoin in 2025. He said that although regulation may be the biggest hurdle for cryptocurrencies as a currency in 2025, the industry is on track to overcome it with the emergence of crypto-friendly governance.
We first used stock and ETF screeners and online rankings to create an expanded list of 30 cryptocurrency companies. We then listed the top 12 stocks from our list with the highest analyst upside potential, as of December 17th. The 12 cryptocurrency stocks with the greatest upside potential are ranked in ascending order by their upside potential.
At Insider Monkey, we’re obsessed with the stocks that hedge funds are piling into. The reason is simple: Our research has shown that we can beat the market by imitating the best stock picks from the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (See more details here).
Are Robinhood Markets, Inc. Cryptocurrency Stocks Enjoying… (HOOD) with the greatest upside potential?
A successful businessman manages his finances confidently on a mobile device.
Analysts’ rise: 13.43%
Robinhood Markets, Inc. offers… (NASDAQ:HOOD) is an all-in-one financial services platform. Its platform allows users to invest and trade stocks, ETFs, options, and cryptocurrencies among other financial instruments. Its Robinhood Crypto, LLC segment allows commission-free cryptocurrency trading. Customers can purchase commission-free cryptocurrencies automatically through the platform on a schedule of their choice. It offers recurring investments in cryptocurrencies, and also holds cryptocurrencies on behalf of its clients in two types of wallets: cold wallets and hot wallets. Hot wallets are managed online, while cold wallets operate entirely offline.
The company has three main areas of focus: winning the active trader market, expanding internationally, and increasing share of wallet with its clients. It made significant progress in all of these focus areas in the third quarter of fiscal 2024. Robinhood Markets, Inc. (NASDAQ:HOOD) has strong financials. The third quarter of 2024 proved to be another profitable quarter for the company, recording its second highest revenue ever. Total revenue grew 36% year-over-year, and adjusted EBITDA increased a whopping 96% from last year.
Robinhood Markets, Inc. continues… (NASDAQ:HOOD) increased its portfolio share. Its net deposits for the third quarter of fiscal year 2024 reached $10 billion or more for the third consecutive quarter. This brings the company’s volume to $34 billion year to date, surpassing the record it set in 2020, which reached $31 billion. Its clients’ assets under custody also grew to a record level of US$152 billion, reflecting its increasing growth in the market. The company ranks 12th on our list of the 12 cryptocurrency stocks with the greatest upside potential.
In general, Hood Rank 12 On our list of cryptocurrency stocks with the most upside potential. Although we recognize the potential of cryptocurrency stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so in a shorter time frame. If you’re looking for an AI stock that is more promising than HOOD but is trading at less than 5 times its earnings, check out our report on Cheapest artificial intelligence stocks.
