Robinhood’s HOOD acquisition of WonderFi Technologies Inc. gives the trading platform a fresh lever as its crypto momentum begins to fade.
The deal gives Robinhood an immediate entry into Canada’s crypto market through WonderFi’s established platforms, Bitbuy and Coinsquare, adding roughly 300,000 funded customers, and pushing Robinhood’s international customer base above 1 million. With more than C$2 billion in assets under custody and a regulated presence in Canada, including Coinsquare’s status as a CIRO-registered crypto platform, WonderFi gives the company a stronger foothold in a market where trust and compliance are key.
That timing is important. Robinhood’s U.S. crypto business has been losing steam, with first-quarter crypto revenues falling 47% year over year to $134 million. Softer Bitcoin prices and weaker retail trading activity have underscored a key concern for investors: crypto remains a highly cyclical business rather than a reliable growth engine. The pressure appeared to persist into April and May, as overall crypto trading volumes stayed muted.
WonderFi is unlikely to deliver an immediate turnaround. Canada is a much smaller market than the United States, and HOOD still has to prove it can move WonderFi’s users deeper into its broader ecosystem without disrupting the trust those platforms have built with customers, institutions and regulators. The planned 0.5% CAD trading fee could pressure incumbents, but lower fees alone may not reignite crypto activity if sentiment stays soft.
Still, the acquisition fits a wider rebuild. After buying Bitstamp, Robinhood gained an institutional crypto base and global licenses. WonderFi adds a Canadian retail and custody platform. Together, they suggest HOOD is trying to reduce dependence on U.S. retail trading spikes by building a more international, regulated crypto network.
How Robinhood’s Peers are Positioning for Crypto Growth
Two close peers of HOOD are Charles Schwab SCHW and Interactive Brokers Group IBKR.
Schwab is moving into crypto through Schwab Crypto, a spot trading platform set for phased rollout to retail clients. The offering will initially support Bitcoin and Ethereum, adding to Schwab’s existing crypto ETPs, futures, options and crypto-linked funds. This reflects rising client demand for direct digital-asset access.
Interactive Brokers strengthened its crypto offering through partnerships with Paxos and Zero Hash for trading, execution and custody services. Interactive Brokers allows clients to trade cryptocurrencies alongside traditional assets on a single platform, with low commissions and no added spreads, markups or custody fees.
HOOD’s Price Performance, Valuation & Estimate Analysis
So far this year, Robinhood shares have plunged 19.8% compared with the industry’s decline of 1.4%.
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HOOD shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 9.14X compared with the industry average of 3.14X.
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The Zacks Consensus Estimate for Robinhood’s 2026 earnings suggests a year-over-year decline of 10.7%. The trend is likely to reverse next year, with earnings expected to jump 34.5%. In the past month, earnings estimates for 2026 and 2027 have been revised lower to $1.83 and $2.46 per share, respectively.
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HOOD currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The Charles Schwab Corporation (SCHW): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).