Financial analysis firm Bernstein has issued a report indicating that the current upswing in digital asset markets is still in its early stages. Despite a decrease in second-quarter trading volumes, the firm reaffirmed its positive outlook on the overall cryptocurrency sector.
Key Points: Following the Q2 earnings release from trading platform Robinhood HOOD, Bernstein’s analysts stated in a note released Thursday that they believe the crypto bull market still has significant room to grow.
The analysis highlighted Robinhood’s success in growing its crypto-related income and product offerings, even during a period of relative price stability in the second quarter.
Robinhood reported robust Q2 results, with revenue increasing 46% year-over-year and an adjusted EBITDA margin rising to 56% from 51% in the previous quarter.
While overall cryptocurrency trading volume decreased by 39% compared to the previous quarter due to reduced market volatility, Bernstein noted a rebound in activity during July.
The report indicated that Robinhood experienced a surge in crypto trading volumes last month, reaching a six-month peak, suggesting favorable conditions moving into the latter half of 2025.
Analysts pointed out that recent price increases in digital assets like Ethereum ETH/USD, Solana SOL/USD, and DeFi tokens have aligned with renewed investor interest. This interest has been fueled by the anticipated Circle CRCL IPO and increased discussions surrounding stablecoins and tokenization.
According to the firm, this has encouraged the flow of new capital into blockchain-based assets.
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The Significance: Bernstein also highlighted Robinhood’s ongoing efforts to expand its suite of crypto offerings, despite the general trend of consolidation within the broader market.
Specific initiatives mentioned included the integration of Bitstamp, the introduction of tokenized stocks in the EU, the launch of new staking features for U.S. customers, and the addition of new cryptocurrencies for trading.
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The report emphasized that Robinhood’s crypto “take rate” (revenue as a percentage of trading volume) has risen to approximately 57 basis points, demonstrating improved pricing strategies.
This figure represents an increase of nearly 20 basis points compared to the previous year.
Bernstein believes that Robinhood’s improved take rate, combined with operational efficiency and a wider range of products, positions the company favorably as market activity increases.
Across its entire business, Robinhood’s assets under management increased by 99% year-over-year to $279 billion, driven by rising market values and consistent customer deposits.
The company saw net deposits of $13 billion during the quarter, representing a 25% annualized growth rate. Robinhood’s “Gold” subscription service now has 3.5 million subscribers, a 76% year-over-year increase, while its Gold credit card has surpassed 300,000 cards issued.
Bernstein reiterated its “Outperform” rating for Robinhood, maintaining a price target of $105.
The stock closed at $106.10 on July 30th, reflecting a 420% increase over the past 12 months.
The firm anticipates continued positive performance in the second half of 2025, driven by increased crypto trading volumes and the management team’s ability to execute its strategy.
“The price of HOOD stock has increased because investors want to have exposure to crypto, and this has been helped by a strong bull cycle,” Bernstein said. The firm added that the company is achieving earnings in line with projections and that “we see HOOD continuing to deliver EPS closer to our estimates of $2.15.”
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