HOOD Vs SCHW: Charles Schwab Launches Bitcoin, Ethereum Trading In Direct Challenge To Robinhood

• Charles Schwab clients will maintain a separate crypto account through Schwab Crypto, which will be linked directly to their brokerage accounts. 
• The company said its clients already hold approximately 20% of spot crypto exchange‑traded products.
• Schwab reported first-quarter EPS of $1.43 on Thursday, topping estimates of $1.39, while revenue of $6.48 billion came in line with expectations.

Charles Schwab (SCHW) announced on Thursday that it would be launching spot crypto trading for its clients with direct access to Bitcoin (BTC) and Ethereum (ETH), marking a deeper push into the crypto-centric market dominated by platforms like Robinhood (HOOD).

The firm said that it will begin a phased rollout to retail clients in the coming weeks, starting off with Bitcoin and Ethereum. It said it plans to add more cryptocurrencies over time, as well as transfer capabilities for both deposits and withdrawals. 

SCHW’s stock fell more than 4.7% in midday trade as retail investors awaited updates on the ceasefire and peace deal between the U.S. and Iran. Retail sentiment around the brokerage improved to ‘extremely bullish’ from ‘bullish’ territory over the past day on Stocktwits. Chatter increased to ‘normal’ from ‘low’ levels. 

Meanwhile, HOOD’s stock moved 1% lower in midday trade, with retail sentiment trending in ‘extremely bullish’ territory over the past, accompanied by chatter at ‘extremely high’ levels. 

How Does Schwab Crypto Work?

Schwab clients will maintain a separate crypto account through Schwab Crypto, which will be linked directly to their brokerage accounts. It is designed to feel like an extension of their existing brokerage rather than a separate “app‑within‑an‑app.” 

Paxos, which also issues PayPal’s (PYPL) stablecoin PayPal USD (PYUSD), will deliver sub-custody and trade execution services. 

This is not Schwab’s first foray into the digital assets space. Its clients hold approximately 20% of spot crypto exchange‑traded products. That existing exposure suggests a built-in audience familiar with digital assets, even if they have not traded them directly.

This contrasts with Robinhood’s model, where crypto trading is often concentrated within its standalone product and associated with shorter-term, high-frequency strategies.

Charles Schwab Beats Q1 Earnings, Revenue

Schwab reported earnings of $1.43 on Thursday morning, beating Wall Street’s expectations of $1.39, according to Koyfin data. Revenue came in at $6.48 billion, at par with analysts’ forecast.

Consensus estimates on Koyfin put the average price target on SCHW’s stock at $116.85, a potential upside of over 22% from current levels. Meanwhile, the average price target on HOOD’s stock stands at around $102, which represents a potential upside of nearly 19%. 

Of the 22 analysts covering SCHW stock, 8 rated the shares a ‘Strong Buy,’ and 11 rated them as ‘Buy.’ Two analysts gave it a ‘Hold’ rating, while one recommended ‘Strong Sell’. HOOD’s stock is covered by 27 analysts, with four giving it a ‘Strong Buy’ rating, 15 recommending ‘Buy’, five recommending ‘Hold’, and three rating it a ‘Sell’ or ‘Strong Sell’.

HOOD’s stock has fallen nearly 25% year-to-date but has more than doubled its value over the past 12 months. Meanwhile, SCHW’s stock has fallen around 4% this year and gained around 25% in the last 12 months. 

Read also: Arthur Hayes Calls Market A ‘No Trade Zone’ Amid US-Iran Tensions – Maps Out Four War Outcomes For Bitcoin

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