HOOD stock surges 14% as crypto and prediction markets take centre stage

Robinhood shares jumped by nearly 14% on Friday as the crypto market recovery reached companies that had a substantial exposure to digital assets.

HOOD traded at $108.31 after reaching $109.71 during the session. The rally also arrived amidst Washington’s fresh attention on crypto regulation and prediction markets, with the two being the growing parts of Robinhood’s business.

Crypto rally lifts Robinhood shares

Bitcoin and other major cryptocurrencies continued gaining in price after President Donald Trump renewed his call for Congress to pass digital-asset market legislation.

The push has improved sentiment around businesses that could benefit from clearer US rules, and Robinhood is one of them. It earns revenue when customers trade cryptocurrencies, making stronger prices and increasing market activity, which is favorable for the company.

But Washington’s attention has not stopped at crypto.

The Commodity Futures Trading Commission discussed digital assets and prediction markets during its inaugural Innovation Advisory Committee meeting on August 20.

The Chairman Michael Selig said the agency could begin creating a crypto-market framework through the power it already holds if legislation doesn’t progress in Congress.

Those comments did not introduce rules specifically for Robinhood, but they will affect the two markets in which the company has been expanding quickly.

Prediction markets add another growth route

Robinhood customers traded 6.1 billion event contracts in July, which is 20x the volume recorded a year earlier.

The company’s wider operating figures were also mixed but a continued annual growth could be seen, with funded customers increasing 7% to 28.5 million, while platform assets increased 19% to $355 billion.

Margin balances climbed 82% from a year earlier to $20.7 billion, but platform assets fell 4% compared with June.

The company has continued to expand its crypto reach, shown by the recent launch of crypto trading for UK customers through Bitstamp’s British operation on August 10.

HOOD returns to the $110 area

With Friday’s rise, HOOD was back above $100 and towards $110, and this was supported by heavier trading activity.

The $110 area previously attracted sellers, and this makes it the next test for the price recovery, and a move beyond it could be a path towards the July range between $115 and $120. But if the advance fades, holding $100 would help preserve the improvement. 

It had not become too stretched as of this writing, and this leaves room for buyers to challenge $110.

Final Summary

• HOOD gained nearly 14% as shares linked with crypto rallied with the crypto market.
• Robinhood’s fast-growing prediction-market business links it to the recent US regulatory discussions.