Seeking Crypto Exposure? 2 Stocks Worth a Look

As cryptocurrency continues to thrive, savvy investors are looking at innovative ways to gain exposure. Stocks like Robinhood and Coinbase are emerging as solid options for crypto enthusiasts.

Investing in Cryptocurrency Through Stocks

Cryptocurrency has undeniably become a hot topic in recent months, drawing in investors eager for a piece of the action. Even though the market is known for its significant volatility—scaring off more risk-averse types—there are ways to dip into crypto through the stock market. Companies like Robinhood Markets (HOOD) and Coinbase (COIN) offer a route to gaining crypto exposure without actually holding the digital currencies directly. It’s worth exploring what each of them brings to the table for those interested in this high-stakes investment area.

Robinhood’s Impressive Growth Trajectory

Robinhood Markets has certainly made waves within the financial services sector, primarily by eliminating commission fees on stock trades and simplifying market access. This model has allowed millions of individuals to engage with the stock market, and now, through their platform, users can also trade cryptocurrencies alongside more traditional assets. The company’s forecast is looking rosy, with analysts estimating earnings of $1.23 per share — that’s a remarkable surge of nearly 100% compared to last year. The recent Q1 results indicated that they are on a solid path, showing an explosive growth of 50% year-over-year in sales, which totalled $927 million.

Crypto Revenue Highlights from Robinhood

What stands out in Robinhood’s report is the meteoric rise in its crypto revenues, which jumped to $252 million—this is a staggering 100% increase when compared with the previous year. Despite the overall trading volume dipping by 28% year-over-year to $46 billion, the user-friendly design of Robinhood’s platform has clearly struck a chord with its customer base, driving participation. This combination of accessible trading tools and explosive growth positions Robinhood well in the ever-evolving landscape of financial services.

Coinbase’s Market Dominance and Performance

Switching gears to Coinbase, it holds the title of the largest cryptocurrency exchange in the U.S., boasting a diverse range of digital assets. The company’s stock has performed remarkably this year, with shares climbing 42% since January, following a positive reaction to its latest quarterly results. Well, it turns out that customer transaction revenues have exceeded consensus expectations quite consistently in recent quarters. Looking ahead, there’s strong reason to anticipate beneficial outcomes from Coinbase’s forthcoming announcements, given the favourable trading conditions in the crypto market at present.

Investor Outlook: Robinhood and Coinbase

As we observe, the cryptocurrency market’s recent bullish trend has captured the attention of many investors. For those looking to gain exposure to this dynamic asset class, both Robinhood and Coinbase present viable options. With higher trading volumes likely ahead for both firms, their upcoming quarterly results should be worth watching closely. Investors keen on stocks that offer a slice of the crypto pie will have their eyes on these two companies for the foreseeable future.

To sum things up, this resurgence of interest in cryptocurrency offers promising opportunities for stock market investors. With Robinhood leading the charge in democratizing financial access and Coinbase holding a strong market position, both companies clearly have the potential to capitalise on this momentum. Investors should keep a keen eye on their performances as they may just benefit from the rising tide in the crypto space.