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Robinhood’s Torrid Run Shines Light on This ETF

BY | ETF Database
5:46 am ET 09/04/26 | 9 VIEWS
With some help from the sell-side, Robinhood Markets HOOD is on fire of late, with analysts highlighting multiple catalysts that could propel the fintech stock. The fact that the stock has multiple tailwinds is proving to be a boon for the Direxion Daily HOOD Bull 2X ETF (HODU) while providing traders with reason to stay on top of this single-stock ETF, which attempts to deliver 200% of the daily performance of Robinhood shares.As investors and traders know, Robinhood is classified as a financial services stock, and its bread and butter has long been services such as trading, retirement accounts, credit cards and the like, but with football season here, the stock and HODU could benefit. That’s not surprising when considering prediction markets represent the fastest-growing business in Robinhood history.Not a Betting Stock, But…Investors considering Robinhood and traders mulling short-term stints with the leveraged HODU need not worry, because this isn’t a betting stock. However, there’s no denying that Robinhood is benefiting from the prediction market boom. Morgan Stanley analyst Michael Cyprys, who upgraded the stock earlier this week, mentioned Rothera — a yes/no exchange that’s a joint venture between Robinhood and market maker Susquehanna International Group — as one of the catalysts for the shares. “Rothera extends Robinhood’s distribution advantage into infrastructure,” wrote the analyst in a report to clients. Of note to traders considering HODU into football season and over the course of the 2026 campaign, Piper Sandler analyst Patrick Moley notes that over the past several months, Robinhood has been successful in steering more event contract volume to Rothera away from partner Kalshi. “Given Kalshi & HOOD’s US-centric user base, and the large gap in popularity between Soccer and Football in the US, we view the explosive World Cup volumes as a leading indicator of what’s to come — the NFL/[NCAA Football] season should be a significant catalyst for HOOD’s 3Q26 and 4Q26 prediction market revenue,” wrote Moley. As it relates to HODU as a potential football season trade, Rothera commanding more sports derivatives volume, because during the 2025 season, Robinhood was a significant volume driver for Kalshi. With Rothera, Robinhood can potentially wring more economic benefit from its prediction market footprint, and that could be positive for the shares and HODU. “Last year during football season, HOOD users made up between 22% and 30% of all volume traded on Kalshi, a share that has decreased to the mid-single digits behind Kalshi’s quest to acquire more of its own users,” added Moley.For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

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