US President-elect Donald Trump has indicated his support for the cryptocurrency industry, sending digital currencies like bitcoin to new heights. On Wednesday, bitcoin rallied above $76,000 for the first time in history.
Analyst Patrick Moley from Piper Sandler believes that this shift in sentiment will lead to comprehensive crypto legislation being passed in the coming quarters. As a result, he has identified several stocks as overweight and offering exposure to the crypto industry.
Robinhood, a financial trading platform, is considered the most attractive way to play the crypto space. Shares have more than doubled this year, driven by its robust monetized crypto offering, which includes over 15 tokens available for trade. Moley estimates that crypto made up around 13% of Robinhood’s revenues in the past 12 months.
CME Group is another stock being targeted by Moley. While crypto currently makes up less than 1% of CME’s revenue, the company offers a premier venue for commercial and institutional users of crypto derivatives. A comprehensive regulatory framework could lead to new contracts and increased adoption.
Virtu Financial is also gaining attention from Moley, who sees the platform as one of the major traditional finance players in the crypto space. Although crypto made up less than 5% of Virtu’s revenue last year, its market maker role positions it well to benefit from evolving crypto presence in traditional finance.
Finally, Cboe Global Markets is being considered for an honorable mention by Moley. The company offers cash-settled bitcoin and ether futures contracts, but shares have added only 12% this year.
Source: https://www.cnbc.com/2024/11/09/piper-sandler-says-buy-these-stocks-to-profit-from-a-wave-of-crypto-adoption.html