Investment bank Compass Point has initiated coverage on Robinhood Markets Inc. with a 'buy' rating and a price target of $61. The analysts see potential growth for Robinhood’s crypto business, expecting annual revenues to rise due to an improved regulatory environment and opportunities for cross-selling. They estimate Robinhood could generate $665 million from existing U.S. customers, with $150 million possibly coming from staking alone. Despite Robinhood's crypto revenue being only 19% of Coinbase's, analysts noted that it has room for growth. Robinhood has recently seen a massive surge in crypto trading revenue, increasing by 700% year-over-year, which contributed significantly to its record profitability. As part of its expansion, Robinhood has launched a prediction market for the NCAA March Madness tournament. Overall, traditional finance is increasingly interested in digital assets, highlighted by simultaneous positive coverage from various analysts in the market.

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