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Tap Into Crypto Exposure with These 2 Stocks

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Crypto has caught many eyes over recent months, with investors clamoring for exposure following the bullish move. The U.S. election helped light the fire in a big way, with President-elect Donald Trump’s favorable stance on digital assets providing a big boost.   

But it’s no secret that crypto is a volatile asset class, spooking many with a more conservative approach. Still, market participants can still obtain decent exposure through several stocks, a list that includes Robinhood Markets (HOOD - Free Report) and Coinbase (COIN - Free Report) .

Both companies facilitate crypto trading services, with upcoming results likely to be positive thanks to higher inflows and trading fees. Let’s take a closer look at each for those seeking exposure to cryptocurrency.

Robinhood Sees Crypto Transactions Soar

Robinhood’s easy-to-use platform lets investors trade a wide variety of assets, which includes cryptocurrencies. Analysts have taken a bullish stance on the company’s upcoming quarterly release, with the $0.41 per share estimate up more than 120% over the last year and suggesting 1200% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Cryptocurrencies revenues of $61 million in its Q3 blasted 165% higher year-over-year to $61 million. And crypto notional trading volumes of $14.4 billion melted 112% year-over-year.

As shown by the year-over-year growth comps, the company’s crypto trading has rebounded in a big way. The company has overall struggled to exceed our consensus expectations concerning crypto-based revenues in recent periods, as shown below.

Zacks Investment Research
Image Source: Zacks Investment Research

Coinbase to See Outsized Sales Growth

Coinbase is the largest U.S. cryptocurrency exchange. The outlook for its upcoming release has been considerably bullish, with the $0.87 Zacks Consensus EPS estimate up 93% over the last several months. Revenue revisions have also followed the same path, with COIN expected to see 67% year-over-year top line growth. 

Zacks Investment Research
Image Source: Zacks Investment Research

The company’s transaction revenues have overall been mixed relative to our consensus expectations over recent quarters. It’s reasonable to expect a strong print here in its next quarterly print given the current trading environment.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Crypto has again gripped investors, with the asset class going on a massive run over recent months. The momentum is undeniable, and for those seeking exposure through stocks, both companies above – Robinhood Markets (HOOD - Free Report) and Coinbase (COIN - Free Report) would provide precisely that.

Both companies stand to benefit in a big way from higher trading volumes, and we’ll likely see this development in their upcoming quarterly results.


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Coinbase Global, Inc. (COIN) - free report >>

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