The new Trump administration will provide a good backdrop for cryptocurrency-related stocks, according to Piper Sandler. Cryptocurrency-related assets rose on Wednesday after Trump’s victory. The president-elect has signaled his support for the industry, and more favorable regulations under a new administration could continue to send cryptocurrencies like Bitcoin to ever-new heights. On Wednesday, Bitcoin rose above $76,000 for the first time in history. “Early in the election cycle, President-elect Trump came out in support of cryptocurrencies and was viewed as the most crypto-friendly candidate in the race,” Piper Sandler analyst Patrick Mulley wrote in a note on Thursday. “Since then, we have seen a broader bipartisan pro-crypto shift in D.C. with over 200 pro-crypto candidates elected.” [Tuesday]. Given this shift in sentiment, we expect to see comprehensive cryptocurrency legislation passed in the coming quarters and believe regulatory clarity will lead to more mainstream cryptocurrency adoption. Cryptocurrency Industry: Analyst Piper Sandler highlighted Robinhood as “the most attractive way to play the crypto space” within his coverage universe Shares of the financial trading platform have more than doubled this year, rising 130% — about 13% of Robinhood’s revenue in months The past 12. “Its monetized cryptocurrency offering is much stronger than its traditional retail brokerage counterparts, with over 15 tokens available for trading,” the analyst wrote of Robinhood. “When a comprehensive regulatory framework around cryptocurrencies is finally introduced in the US, We believe HOOD will likely look to expand its crypto offerings by (1) increasing the number of tokens available for trading on its platform and (2) offering new products such as staking (and potentially lending) to the customer with a ready base to adopt new crypto products.” However, Moley’s $30 price target on Robinhood is only a fraction of the stock’s closing price on Thursday. Molly was also bullish on CME Group shares, which are up 5% this year. While cryptocurrencies are currently an “intangible” part of CME’s business — making up less than 1% of its revenue in the past 12 months — the company is “the premier place for commercial and institutional users of cryptocurrency derivatives,” the analyst wrote. “The CME currently offers 9 different cryptocurrency contracts across BTC (5) and ETH (4). However, through its partnership with CF Benchmarks, it has an additional 28 benchmark prices that we believe it could look to launch new contracts around if regulatory clarity improves.” “The analyst added. Moley’s $250 price target suggests CME shares could add another 13% over the next 12 months. Although cryptocurrencies accounted for less than 5% of Virtu Financial’s revenue last year, Molly said the platform is “quietly operating as one of the major traditional financial players in the crypto space.” “The market maker is currently an authorized participant in all Bitcoin and Ether ETFs (20+) and we believe the future launch of options on spot crypto ETFs could add another layer to VIRT’s crypto revenue,” the analyst wrote. . “Overall, as cryptocurrencies evolve in traditional finance, we believe VIRT is well positioned to benefit from them.” Virtu Financial shares are up 65% in 2024. Moley’s $35 price target is about 5% higher than where the stock closed on Thursday. Finally, Molly gave an honorable mention to the Cboe Global Markets trading platform. Less than 1% of Cboe’s revenue has been derived from crypto assets in the past 12 months. The company “offers and settles cash-settled bitcoin and ether futures contracts, and recently exited its spot digital asset trading platform and integrated its digital asset derivatives business into its existing global derivatives and clearing business,” Molly wrote. Cboe shares have added 12% this year, lagging the broader market, and Moley’s $220 price target suggests an additional 9% upside.
Piper Sandler Says You Should Buy These Stocks to Catch the Wave of Cryptocurrency Adoption
