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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Crypto trading platform Robinhood has agreed to pay a $3.9 million fine as part of a settlement related to complaints filed several years ago by its customers. The penalty also comes with stricter behavioral requirements for the company going forward.

The investigation into Robinhood was sparked by consumer complaints about questionable practices within their crypto division.
Robinhood Mandatory Paying Rp6 T to Customers
California Attorney General Rob Bonta announced in a press release on Wednesday (4/9) that Robinhood would pay a fine for its actions in restricting customers' access to its crypto assets between 2018 and 2022. In addition, Robinhood failed to provide important details regarding its trading practices and order handling.