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A recent move higher in crypto has caught many eyes, with investors clamoring for exposure following the bullish move. The U.S. election helped light the fire in a big way, with President-elect Donald Trump’s favorable stance on digital assets paving the favorable outlook.  

It’s no secret that crypto is a volatile asset class, spooking many with a more conservative approach. Still, market participants can still obtain exposure through several stocks, a list that includes Robinhood Markets (HOOD - Free Report) and Coinbase (COIN - Free Report).

Both companies facilitate crypto trading services, with their upcoming results likely to be positive thanks to higher inflows and trading fees. Let’s take a closer look at each for those seeking exposure to cryptocurrency.

Robinhood Crypto Revenues Soar 
 

Robinhood’s easy-to-use platform lets investors trade a wide variety of assets, which includes cryptocurrencies. Analysts have taken a bullish stance on the company’s current year outlook, with the $0.74 per share estimate up nearly 430% over the last year.

Image Source: Zacks Investment Research

The company recently delivered its Q3 results, which were primarily positive overall despite falling short of both EPS and sales expectations. EPS grew to $0.17 per share, whereas sales of $637 million grew 36% year-over-year.

The $637 million sales print reflected the company’s second-highest-ever total, with YTD net deposits of $34 billion also exceeding prior full-year records. Below is a chart illustrating the company’s sales on a quarterly basis.

Notably, cryptocurrencies revenues of $61 million blasted 165% higher year-over-year to $61 million. And crypto notional trading volumes of $14.4 billion melted 112% year-over-year.

As shown by the year-over-year growth comps, the company’s crypto trading has rebounded in a big way. The company has overall struggled to exceed our consensus expectations concerning crypto-based revenues in recent periods, as shown below.

Image Source: Zacks Investment Research

Coinbase Maintains Favorable Policy Stance 
 

Coinbase is the largest U.S. cryptocurrency exchange. The outlook for its current fiscal year has been back-and-forth over the last year but overall remains bullish, with the $5.39 per share expected up nearly 920% over the period and suggesting 1350% growth on easy comps.

Image Source: Zacks Investment Research

The company delivered a positive message concerning crypto policy following its latest set of quarterly results, stating:

‘We continue to be a trusted partner to policymakers and organizations like Fairshake — one of the largest non-partisan PACs — and StandWithCrypto — an independent grassroots advocacy group with approximately 1.8 million crypto advocates. Looking beyond Election Day 2024, we are prepared to work with either administration and believe the odds of pro-crypto legislation are better than ever.’

As shown below, the company’s transaction revenues have overall been mixed relative to our consensus expectations over recent quarters. It’s reasonable to expect a strong print here in its next quarterly print given the current trading environment.

Image Source: Zacks Investment Research

Bottom Line
 

Crypto has again gripped investors, with the asset class going on a massive run over recent months. The momentum is undeniable, and for those seeking exposure through stocks, both companies above – Robinhood Markets and Coinbase would provide precisely that.

Both companies stand to benefit in a big way from higher trading volumes, and we’ll likely see this development in their upcoming quarterly results in a few months from now.

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