Robinhood Markets, Inc. (NASDAQ: HOOD) expanded its United Kingdom cryptocurrency ecosystem on Monday, launching a new trading offering in partnership with Bitstamp UK Ltd. The move allows eligible UK customers to trade more than 50 cryptocurrencies within the same application used for stocks and shares ISAs, equities, options, and futures. This expansion aims to deepen Robinhood’s presence in the European market by integrating digital assets into its existing financial services platform, potentially driving user engagement and transaction volume in a region with growing regulatory clarity for crypto assets.

The new service is marketed with zero trading fees and no account maintenance or custody fees. However, UK customers will incur a 0.10% foreign exchange (FX) fee, rising to 0.30% during specific weekend conversion windows. To support informed decision-making, Robinhood introduced Cortex Digests for Crypto, an artificial intelligence tool that synthesizes breaking news, market data, technical indicators, and proprietary insights to explain price movements in accessible language. Additionally, the launch opens Robinhood Chain, a Layer 2 blockchain powered by Arbitrum, to local developers.

Since its global launch on July 1, Robinhood Chain has recorded more than $18 billion in decentralized exchange (DEX) trading volume and over $840 million in total value locked. These figures highlight the network’s rapid adoption and utility, providing a foundational layer for the company’s broader Web3 strategy. The integration of this infrastructure into the UK market positions Robinhood to capture developer activity alongside retail trading demand.

What the Numbers Show

While the UK expansion represents a strategic growth vector, Robinhood’s stock performance reflects mixed technical signals. At $95.00, the stock trades within its longer-term range of $63.52 to $153.86. It sits 2.6% below the 20-day simple moving average (SMA) at $97.41 and 3.2% below the 200-day SMA at $98.08, indicating overhead supply pressure. However, the price remains 8.5% above the 100-day SMA at $87.46, suggesting the intermediate uptrend remains intact despite recent consolidation. The relative strength index (RSI) at 47.30 indicates neutral momentum, neither stretched enough to force a capitulation nor strong enough to drive a immediate breakout.

Analyst Outlook and ETF Holdings

Analysts maintain a consensus Buy rating for Robinhood, with an average price forecast of $115.06. Recent actions include Cantor Fitzgerald lowering its target to $115.00 and Goldman Sachs lowering its target to $118.00, while Citizens maintained a Market Outperform rating with a $155.00 target. Looking ahead, the next major catalyst is the estimated earnings report on November 4, 2026, where analysts project earnings per share (EPS) of 50 cents, down from 61 cents year-over-year, and revenue of $1.34 billion, up from $1.27 billion.

Robinhood holds significant weight in several key exchange-traded funds, meaning fund flows could impact stock liquidity. The ARK Blockchain & Fintech Innovation ETF (NYSE: ARKF) holds a 6.27% weight, followed by the iShares US Broker-Dealers & Securities Exchanges ETF (NYSE: IAI) at 5.67%, and the ARK Next Generation Internet ETF (NYSE: ARKW) at 5.35%. These concentrations suggest that institutional rebalancing or sector-wide sentiment shifts will have a pronounced effect on HOOD’s price action.

Bernstein analysts led by Gautam Chhugani project an approximate 85% upside for Robinhood Markets Inc., raising the price target to $160 and maintaining an Outperform rating. The firm identifies tokenization, prediction markets, and blockchain infrastructure as critical growth engines that extend beyond traditional crypto trading. This outlook comes as the company pivots from a pure trading model toward a broader financial infrastructure platform, leveraging new products like Robinhood Chain and Rothera to offset volatility in digital asset volumes.

Strategic Shift to Infrastructure

The research report highlights that Robinhood’s crypto strategy is evolving significantly. Key growth drivers identified include Robinhood Chain, tokenized equities, Bitstamp, and Robinhood Earn. Since its launch, Robinhood Chain has generated more than $12 billion in decentralized exchange volume and processed over 150 million transactions. Additionally, Robinhood Earn has attracted more than $200 million in deposits. CEO Vlad Tenev noted that these recently launched products support long-term crypto growth, even as trading activity weakened during the second quarter.

Prediction Market Expansion

Robinhood’s prediction market business is emerging as a major revenue contributor. The company’s Rothera exchange processed more than 3.5 billion contracts, including 2.1 billion during Q2. This activity generated around $17 million in quarterly revenue, making Rothera the third-largest exchange of its kind in the U.S., according to Bernstein. Management expects a greater share of prediction market flow to migrate to Rothera over time.

Revenue Dynamics and Outlook

Crypto revenue declined nearly 40% due to weaker industry trading volumes, prompting Bernstein to reduce its 2026 crypto trading revenue estimate by 49%. However, Tenev dismissed concerns about a structural slowdown, arguing that digital assets remain in a long-term growth cycle. The company is diversifying its revenue streams, with the Robinhood Legend trading platform and credit card business each generating more than $100 million in annual revenue. Tenev stated that the company aims to increase U.S. equity ownership from roughly 65% of households to more than 90%, focusing on private-market access, retirement products, and global investing.

What the Numbers Show

The divergence between declining crypto trading revenue and robust engagement in new verticals like prediction markets and tokenization suggests a successful strategic pivot. While traditional crypto revenues fell nearly 40%, the rapid adoption of Rothera (2.1 billion contracts in Q2 alone) and significant volume on Robinhood Chain ($12 billion) indicates that non-trading infrastructure services are becoming material contributors. This shift reduces reliance on volatile spot trading volumes, supporting the analyst view of sustainable long-term growth.