In a move signaling the increasing integration of digital assets into mainstream finance, Robinhood (HOOD) is set to join the S&P 500 index on September 22. The announcement spurred a 7% surge in after-hours trading, pushing the stock past $108 after closing at just over $101 on Friday, according to Yahoo Finance. With a year-to-date increase exceeding 150%, Robinhood’s inclusion underscores the market’s growing confidence in crypto-friendly platforms.
However, the celebration is tempered by the exclusion of Strategy (formerly MicroStrategy), a Bitcoin treasury firm with a market capitalization of $95 billion—well above the S&P’s $20 billion threshold. Despite pioneering the digital asset treasury strategy and holding over $70 billion in Bitcoin, Strategy’s shares dipped nearly 3% after-hours following the announcement.
Coinbase, another digital asset heavyweight, paved the way for crypto firms by joining the S&P 500 on May 19. These inclusions reflect a broader trend: a more accommodating regulatory landscape and rising institutional interest in cryptocurrencies. This shift has fueled significant price gains in Bitcoin, Ethereum, and other leading digital assets, alongside massive inflows into crypto-based ETFs.
Robinhood’s Q2 performance further solidifies this trend. The platform reported $989 million in total sales, a 45% increase year-over-year, surpassing analyst expectations of $913 million. Earnings per share reached $0.42, translating to $386 million in profits—a $50 million increase from the previous year and significantly above the projected $276.6 million.
While crypto trading revenue experienced a slight dip from $252 million in Q1 to $160 million in Q2, marking a 98% increase from the previous year, options and equities trading picked up the slack. Options-based income has once again become Robinhood’s primary revenue driver, raking in $265 million, while equities brought in $66 million.
Meanwhile, the decentralized exchange Hyperliquid is stirring debate with its plans for a “Hyperliquid-first” USDH stablecoin. A proposal on Discord noted that validators will vote for the best team to build this coin. This move has been met with accusations of unfair practices and questions surrounding the motivations of involved parties, highlighting the complexities and competitive nature of the rapidly evolving stablecoin landscape.
The intrigue doesn’t stop there. Hyperstable, an already-established Hyperliquid stablecoin protocol, claims that the USDH ticker was previously blacklisted, forcing them to use USH instead. Native Markets, another contender, has been accused of having a potential head start and a suspiciously timed funding source, adding fuel to the controversy.
As Hyperliquid validators prepare to cast their votes, the industry watches closely. This development comes amid a surge of new stablecoins, with players like World Liberty Financial, MetaMask, Amazon, and Walmart all vying for a piece of the pie.
Paul Faecks, CEO of Plasma, emphasizes the dominance of stablecoins as a crypto use-case, predicting further institutional and on-chain application launches in the future.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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