Not a Bitcoin Bull? Then Steer Clear of Robinhood Stock.

David Moadel

Wed, Jan 10, 2024, 4:30 AM 3 min read

Years ago, Robinhood Markets (NASDAQ:HOOD) revolutionized modern stock trading. It’s a different world in 2024, however, and HOOD stock investors need to understand that Robinhood has changed its business model. After conducting your due diligence, you might actually choose to sell your Robinhood share stake if you have one.

Or you, may decide to double down on Robinhood stock. It all comes down to your belief in the future of digital assets. Are you on board with the blockchain revolution? Robinhood certainly is, and your stance on cryptocurrency should inform your decision about whether or not to invest in Robinhood.

You’ll Get Direct Crypto-Market Exposure With HOOD Stock

As you may recall, JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon blasted cryptocurrency last year, saying he’s “always been deeply opposed to” it. Dimon even went so far as to proclaim, “If I was the government, I’d close it down.”

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Clearly, not every financial expert supports the blockchain, Bitcoin (BTC-USD) and cryptocurrency in general. If you’re going to buy or sell Robinhood stock, you’ll definitely want to decide whether you’re a crypto bull or a crypto hater like Dimon.

Just to recap, Robinhood launched cryptocurrency wallets in 2021. Then, the company introduced Robinhood Connect, which facilitates inter-app connectivity of crypto assets, in 2023.

And of course, Robinhood allows its users to trade Bitcoin and some other popular cryptocurrency tokens. Robinhood reported that, in November 2023, the company’s “Crypto Notional Trading Volumes” increased a whopping 74% year-over-year to $4 billion.

Robinhood Expands With Crypto in Europe

In case you’re still not convinced that Robinhood is going all in on the blockchain, check this out. Just recently, Bloomberg broke the story that Robinhood is introducing commission-free cryptocurrency-trading services in the European Union.

Robinhood CEO Vlad Tenev once remarked that his company’s brand “became almost synonymous with crypto in 2021,” when Robinhood “sort of became one of the largest crypto platforms in the world practically overnight.” Now that the company is expanding into the EU with its crypto-trading services, Robinhood will continue to be “almost synonymous” with cryptocurrency in 2024.

Whether that’s a good or a bad thing depends on your perspective. One prominent analyst has a bullish perspective, as Mizuho Securities’ Dan Dolev recently issued a “buy” rating on HOOD stock. He also published a $14 price target Robinhood shares, implying a fair amount of upside.

Dolev made no bones about his stance on Robinhood as a crypto-market participant. As the market prepares for an inevitable spot Bitcoin exchange-traded fund, Dolev sees Robinhood as a beneficiary of the market’s crypto craze.

“We were most pleased to hear about Robinhood’s share gains in crypto helped by price transparency, a ‘flight to safety’ for customers post-Binance/FTX, the opportunity to benefit from a Bitcoin ETF given a diversified business model,” he said.

Robinhood Stock: Are You a Bitcoin Bull or Not?

Robinhood stock won’t have an exact one-to-one correlation with Bitcoin in 2024. However, the two assets will probably be closely connected. That’s because Robinhood is deeply immersed in the world of cryptocurrency and the blockchain.

So, be sure to consider your perspective on Bitcoin before deciding whether to invest in Robinhood or not. If you’re a crypto bull, feel free to go long on HOOD stock. Otherwise, the best policy is to simply stay out of the trade.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.