Following Robinhood's nearly 12% stock drop due to weaker crypto trading, investors like Cathie Wood's Ark Invest have shown confidence by purchasing over 500,000 shares. Wall Street analysts agree, citing improving momentum in equity and options trading volumes. Cantor Fitzgerald and Compass Point have reiterated their positive ratings, expecting stabilization and a stronger second quarter.
While some analysts caution about risks in crypto trading, others like Bernstein remain bullish, pointing to signs of stabilizing crypto activity and potential revenue growth from new streams like prediction markets.