Bitcoin News Today: Robinhood's S&P 500 Surge Exposes the Crypto Market's Uncertain Future

Robinhood Markets Inc. (NASDAQ:HOOD) was unexpectedly added to the S&P 500 index on September 5, 2025, sparking a 7% surge in its stock price after market close. The inclusion is set to take effect on September 22, 2025, as part of the quarterly index rebalancing process. This development marks a significant milestone for the fintech company, which has expanded its offerings beyond traditional brokerage services to include cryptocurrency trading and, more recently, prediction markets for professional and collegiate sports events. Despite meeting all the criteria for inclusion, Michael Saylor’s company Strategy (MSTR) was not selected for the index, leading to a nearly 3% drop in its after-hours trading as it erased gains made earlier in the day [3].

Robinhood, founded in 2013 by Vladimir Tenev and Baiju Bhatt, operates as a retail brokerage platform offering stock, options, ETF, and cryptocurrency trading. With a market capitalization of approximately $88.5 billion, the company has grown to serve over 25 million investors and employs 2,300 staff, primarily based in Menlo Park, California. The company’s decision to launch prediction markets for NFL and NCAA football in partnership with the digital prediction platform Kalshi has been viewed as a strategic move to diversify revenue streams and challenge traditional sports betting operators such as DraftKings and Flutter Entertainment [1].

The S&P 500 inclusion is expected to increase institutional interest in Robinhood’s stock, potentially enhancing its liquidity and visibility among portfolio managers. Historically, inclusion in the index often leads to increased demand for a company’s shares as index-tracking funds are required to purchase the newly added stock to maintain alignment with the benchmark. Robinhood’s recent expansion into crypto-related services, which include facilitating transactions in Bitcoin and other digital assets, has positioned it as a key player in the rapidly evolving financial technology sector [5].

Despite its inclusion in the S&P 500, Robinhood’s business model continues to face scrutiny. The company has yet to achieve consistent profitability, with a price-to-earnings ratio of 54.6 as of September 2025, indicating high expectations from investors. Analysts have been divided in their outlooks, with 67% of the 27 ratings assigned to the stock categorized as “Buy” and 29.6% as “Hold” [1]. The company’s ability to maintain its growth trajectory while managing regulatory risks, especially in the crypto space, remains a key focus for market observers.

Concurrently, the broader crypto market has shown mixed signals. While some analysts remain bullish on the sector’s long-term prospects, with Bernstein predicting a bull market running through 2027, others caution that Bitcoin’s valuation remains speculative. Michael Saylor, CEO of Strategy, has repeatedly forecasted a price of $21 million per Bitcoin by 2045, though most market participants view such projections as overly optimistic. If Bitcoin were to achieve such a valuation, its market capitalization would reach $441 trillion, far surpassing the combined value of all S&P 500 companies and the global economy [2].

The S&P 500’s latest adjustments also include the removal of Caesar’s Entertainment (CZR), MarketAxess Holdings (MKTX), and Enphase Energy (ENPH), which will transition to the S&P SmallCap 600. The index has historically rebalanced companies for business-specific reasons or periodic reviews, with the most recent changes occurring in August when Interactive Brokers (IBKR) replaced Walgreens Boots Alliance (WBA) [5].

Source:

[1] Robinhood Markets: HOOD Stock Price Quote & News (https://robinhood.com/us/en/stocks/HOOD/)

[2] 1 Unstoppable Cryptocurrency to Buy Before It Soars (https://www.fool.com/investing/2025/09/06/1-cryptocurrency-buy-soars-18800-michael-saylor/)

[3] MSTR News: Strategy Stock Falls as Robinhood Beats It to (https://www.coindesk.com/business/2025/09/05/michael-saylor-s-strategy-snubbed-by-s-and-p-500-amid-robinhood-s-surprise-inclusion)

[4] Robinhood's Rise Shows Why It's Never Too Late To Get In (https://www.investors.com/news/robinhood-stock-never-too-lat/)

[5] Robinhood, AppLovin Additions Lead S&P 500 Index Changes (https://www.investopedia.com/robinhood-applovin-additions-lead-s-and-p-500-index-changes-11804139)