Potential acquisition of Robinhood by FTX likely off table, says Barclays

Binance signing a non-binding letter of intent to acquire FTX.com has implications for Coinbase (COIN) and Robinhood (HOOD), Barclays analyst Benjamin Budish tells investors in a research note. The competitive environment may ease in the U.S., but intensify internationally, and a potential acquisition of Robinhood by FTX is now likely off the table, says the analyst. In addition, Budish believes regulatory scrutiny in the U.S. may increase while retail crypto trading is likely to face stronger near-term headwinds. The potential contagion risk is unknown, though Coinbase’s exposure is "de minimis," contends the analyst.