A survey of more than 600 active Robinhood users suggests strong potential demand for single-stock perpetual futures, which could provide significant upside for the company’s shareholders, according to Mizuho.
Some 94% of respondents said they would be likely or very likely to trade the contracts if Robinhood made them available. The survey also indicated that the new product may have limited impact on the platform’s existing equity trading.
According to Mizuho analysts, 84% of those questioned said they would use mostly or exclusively new money to trade single-stock perpetual futures, rather than shifting funds from their current share-trading activity.
“We view this as a potential strong positive,” Dan Dolev, Mizuho managing director, wrote in a Wednesday note.
Robinhood announced on Sept. 29 that it planned to introduce perpetual futures trading for users in the United States in the coming months. The company also said it intended to offer 24/7 trading in selected U.S. equities.
However, Johann Kerbrat, Robinhood’s senior vice president and general manager of crypto and international, recently told The Block that the company had no single-stock perpetual plans to announce.
Kerbrat added that Robinhood was still assessing the SEC’s latest innovation exemption relating to tokenized stocks.
“While timing is uncertain around single-stock perps, we believe it is plausible to assume this product could come over the medium-term,” Dolev said.
Mizuho maintained its Outperform rating on Robinhood and its $140 price target for HOOD shares, citing the possibility that single-stock perpetual futures could be introduced over the medium term.
The analysts also pointed to Coinbase’s September filing to list perpetual futures linked to large-cap U.S. stocks as further evidence of interest in the product across the industry.
