The new Trump administration will provide a favorable backdrop for crypto-related stocks, according to Piper Sandler. Cryptocurrency-related assets rose on Wednesday after Trump’s victory. The president-elect has shown support for the industry, and better regulations under the new administration could continue to send digital currencies like bitcoin to all-time highs. On Wednesday, bitcoin rallied above $76,000 for the first time in history. “Early in the election cycle, President-elect Trump came out in support of crypto and is considered the most crypto-friendly candidate in the race,” wrote Piper Sandler analyst Patrick Moley in a note on Friday. “Since then, we’ve seen a broader bi-partisan, pro-crypto shift in DC with >200 pro-crypto candidates elected (Tuesday). Given this shift in sentiment, we expect to see crypto legislation which is comprehensively passed in the coming quarters and believes that regulatory clarity will lead to greater adoption of crypto.” In this better background, Moley shows some stocks that are currently overweight and offers investors about the crypto industry: Analyst Piper Sandler highlights Robinhood as “the most interesting way to play the crypto space” in the world of coverage. Shares of the financial trading platform have doubled this year, rising 130%. Moley estimates that crypto made up about 13% of Robinhood’s revenue over the past 12 months. “The monetized crypto offering is stronger than our traditional retail brokerage peers, with more than 15 tokens available for trading,” the analyst wrote of Robinhood. “When the full regulatory framework for crypto is finally introduced in the US, we believe that HOOD will expand the crypto offering by (1) increasing the number of tokens available for trading on the platform and (2) introducing new products like staking. (and possibly lending) to customer base that is ready to use the new crypto product. Still, Moley’s $30 price target on the stock closed Thursday. Moley is also bullish on CME Group stock, while crypto is now a part of “no material” of CME’s business – making less than 1% of revenue in the past 12 months – the company is “the main place for commercial & institutional users of crypto derivatives,” the analyst wrote. “CME currently offers 9 different crypto contracts between BTC (5) and ETH (4). However, through the partnership with CF Benchmarks has added 28 reference rates that we think can be seen to start new contracts if the regulatory clarity improves. “added the analyst. Moley’s $250 price target indicates that CME shares could increase another 13% in the next 12 months. Although crypto made up less than 5% of Virtu Financial’s revenue last year, Moley said that this platform “quietly operates as one of the financial players the main traditional in the crypto space.” “Market makers are now legal participants in ALL of the publicly traded spot bitcoin & ether ETFs (20+) and we think that the options we will launch in these spot crypto ETFs can add another layer to our profits crypto VIRT,” wrote the analyst. . “All in all, as the presence of crypto in traditional finance is growing, we think that VIRT is well positioned to benefit.” Virtu Financial shares have risen 65% in 2024. Moley’s $35 price target is almost 5% higher than where the stock closed Friday. Finally, Moley awarded the Cboe Global Markets trading platform. Less than 1% of Cboe’s revenue came from crypto assets in the last 12 months. The company “offers & clears cash-settled bitcoin & ether futures contracts,” Moley wrote, and “recently exited its spot digital asset trading platform and integrated digital asset derivatives into its existing Global Derivatives & Clearing Business.” Cboe shares have added 12% this year, trailing the broader market, and Moley’s $220 price target indicates an additional 9% upside.
Piper Sandler said it bought the stock to capitalize on the wave of crypto adoption
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