Robinhood (HOOD) stock surged 5.03% in intraday trading, fueled by the launch of HYPE spot trading on its platform and increased investment from Cathie Wood's Ark Invest. The financial services company's shares rallied as investors responded positively to these developments, signaling growing confidence in Robinhood's expansion into the cryptocurrency market.

The introduction of HYPE spot trading on Robinhood's platform coincided with HYPE's impressive performance in the crypto market. HYPE broke through the $40 mark, posting a substantial 24-hour gain of 10.77%. This surge in HYPE's value likely contributed to the increased interest in Robinhood's stock, as investors anticipate potential revenue growth from cryptocurrency trading activities.

Adding to the bullish sentiment, Cathie Wood's Ark Invest made a significant move by increasing its stake in Robinhood. The firm purchased an additional 167,489 shares of HOOD, valued at approximately $21.3 million. This investment, split between the Ark Innovation ETF (ARKK) and the Ark Next Generation Internet ETF, underscores the confidence of a prominent investor in Robinhood's future prospects. The vote of confidence from Ark Invest, known for its focus on innovative and disruptive technologies, appears to have resonated positively with other investors, further driving up Robinhood's stock price.