Piper Sandler Says Buying These Stocks to Profit from Cryptocurrency Adoption Wave | Wilnesh News
Piper Sandler said the new Trump administration will provide a good backdrop for cryptocurrency-related stocks. Cryptocurrency-related assets soared on Wednesday following Trump’s victory. The president-elect has expressed his support for the industry, and more favorable regulations from the new administration could continue to push digital currencies like Bitcoin to new all-time highs. 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 Moley wrote in a report on Thursday. Since then, we have seen a broader bipartisan shift in support of cryptocurrencies in Washington, D.C., with over 200 pro-crypto candidates elected (Tuesday). Given this shift in sentiment, we expect to see more support in the coming months. With sweeping crypto legislation passed in the quarter and the belief that regulatory clarity will lead to further mainstreaming of cryptocurrencies, Morley shared a few stocks that he currently rates overweight for investors. Provides investment opportunities in the crypto industry: Piper Sandler analyst highlights Robinhood as “the most attractive way to participate in the crypto space” under his coverage. Shares of the financial trading platform have more than doubled this year, soaring 130%. Moley estimates that cryptocurrency revenue accounted for about 13% of Robinhood’s revenue over the past 12 months. “Its monetized cryptocurrency offering is more robust than its traditional retail brokerage peers, with more than 15 tokens available for trading,” the analyst wrote of Robinhood. “When the U.S. finally rolls out a comprehensive regulatory framework around cryptocurrencies At the time, we believe HOOD is likely to expand its cryptocurrency offerings by (1) increasing the number of tokens that can be traded on its platform and (2) launching new products such as staking (and possibly loans) to prepare for the adoption of new cryptos The product’s customer base. Still, Morley’s $30 price target on Robinhood is just a fraction above the stock’s closing price on Thursday. Morley is also bullish on CME Group shares, which have risen this year. 5%. The analyst wrote that while cryptocurrencies are currently a “non-material” part of CME’s business (accounting for less than 1% of its revenue in the past 12 months), the company is “a major player for commercial and institutional users.” The premier place to use cryptocurrency derivatives”. “The CME currently offers 9 different cryptocurrency contracts, covering BTC (5) and ETH (4). However, through its partnership with CF Benchmarks, it has an additional 28 reference rates, which we believe will increase if regulatory clarity improves. It may consider launching new contracts,” the analyst added. Moley’s $250 price target implies that CME stock could rise another 13% over the next 12 months. Although cryptocurrencies have accounted for less than 5% of Virtu Financial’s revenue over the past year, Moley said the platform is “quietly operating as one of the major traditional financial players in the cryptocurrency space.” The analyst wrote: “The market maker is currently an authorized participant in all publicly traded spot Bitcoin and Ethereum ETFs (20+), and we believe the launch of options on these spot crypto ETFs in the future could provide a boost to VIRT’s crypto revenue. Adding another layer. “All in all, as cryptocurrencies grow in the traditional financial space, we believe VIRT is well-positioned to benefit. Shares of Virtu Financial are up 65% in 2024. Finally, Moley gave an honorable mention to trading platform Cboe Global Markets. Less than 1% of Cboe’s revenue in the past 12 months came from crypto assets, Moley wrote , the company “offers and clears cash-settled Bitcoin and Ethereum futures contracts” and “recently exited its spot digital asset trading platform and integrated its digital asset derivatives into its existing global derivatives and In liquidation business. Cboe shares are up 12% this year, lagging the broader market, and Morley’s $220 price target implies room for an additional 9% upside.
