Bank of America Analyst Picks Robinhood Over Coinbase as Top Crypto Exchange

Bank of America analyst Craig Siegenthaler raised Robinhood Markets' price target to $119, implying 19.1% upside potential, and maintained a "Buy" rating. He slashed Coinbase Global's price target to $369, with a "Hold" rating. Siegenthaler views Robinhood as the better crypto play compared to Coinbase, citing improved sales and expense management strategies.

Robinhood Markets Inc. reported a 45% year-on-year increase in net revenue to $989 million for the second quarter of 2025, outpacing Wall Street’s expectations. The surge was primarily driven by a 65% rise in transaction-based revenues, reflecting heightened trading activity. A standout component of this growth was the company’s crypto segment, which nearly doubled its earnings to $160 million, driven by the integration of Bitstamp’s institutional flow and the return of retail traders to the platform [1].

Crypto trading volumes reached $28 billion in Q2 2025, up 32% from the prior quarter, aligning with a broader 21.7% increase in the global crypto market cap to $3.36 trillion. This performance underscores Robinhood’s strategic shift toward digital assets and its efforts to expand into tokenization. The company launched Ethereum-based Robinhood Chain for tokenizing illiquid assets such as private equity and real estate, with initial offerings already available in Europe [1].

Despite the positive earnings report, Robinhood’s shares fell slightly in after-hours trading, signaling lingering skepticism among investors. Analysts noted that while the results were strong, the company faces challenges in maintaining this momentum, particularly in the volatile crypto market. Regulatory scrutiny and market uncertainty remain key risks, according to analysts [3].

Bank of America analyst Craig Siegenthaler raised Robinhood Markets' price target to $119, implying 19.1% upside potential, and maintained a "Buy" rating. He slashed Coinbase Global's price target to $369, with a "Hold" rating, viewing Robinhood as the better crypto play compared to Coinbase, citing improved sales and expense management strategies [2].

Robinhood’s Q2 performance highlights its evolving role as a bridge between traditional and digital markets. With the integration of institutional liquidity and the expansion of tokenized offerings, the platform appears well-positioned to attract both retail and institutional investors. However, the long-term success of its tokenization strategy will depend on regulatory clarity and continued market confidence.

References:
[1] GlobalMarketBulletin - [https://globalmarketbulletin.com/robinhood-hoods-q2-2025-earnings-stun-wall-street-with-45-revenue-surge/](https://globalmarketbulletin.com/robinhood-hoods-q2-2025-earnings-stun-wall-street-with-45-revenue-surge/)
[2] CryptoAdventure - [https://cryptoadventure.com/robinhoods-strong-q2-fails-to-sway-cautious-wall-street-analysts/](https://cryptoadventure.com/robinhoods-strong-q2-fails-to-sway-cautious-wall-street-analysts/)
[3] Mitrade - [https://www.mitrade.com/insights/news/live-news/article-8-1005151-20250801](https://www.mitrade.com/insights/news/live-news/article-8-1005151-20250801)