Robinhood adds Bitcoin and Ethereum products from Grayscale

The Robinhood platform adds Grayscale, Bitcoin Trust (GBTC) and Ethereum Trust (ETHE) investment products. The official addition was on May 6, 2022. The addition of these investment products demonstrates Robinhood’s growing interest in cryptocurrencies.

There are two new ways to access cryptocurrencies in Robinhood

Robinhood expands its cryptocurrency offering

Although it blooms, the application of trade Robinhood has only made some cryptocurrencies available to its users for years. But the situation changed rapidly and the platform increased the number of available cryptocurrencies to offer 11 different assets.

On April 12, 2022, Robinhood added 4 major cryptocurrencies, namely: Solana (SOL), Compound (COMP), Shiba inu (SHIB) and Polygon (MATIC). However, Bitcoin Cash, Dogecoin, Bitcoin SV, Ethereum, Ethereum Classic and Litecoin were already available before.

The platform has also demonstrated its expansion through the acquisition of the British cryptocurrency company Ziglu. Robinhood is even interested in the rise that DOGE should know thanks to Elon Musk. The platform inevitably leans toward cryptocurrencies and digital assets.

To go even further, Robinhood decided to list Grayscale’s investment products. This decision has generated a lot of investment opportunities for users. Barry Silbert, CEO of Digital Currency Group, says the GBTC and ETHE exchange is now available on Robinhood.

Robinhood is partnering with asset manager Grayscal

The investment products that Robinhood has recently listed belong to Grayscale. Its parent company is none other than the famous Digital Currency Group or DCG, led by Barry Silbert.

As investment products, they are listed as stocks. Thus, with these products, investors are exposed to the price of bitcoin to that of ether without having to be forced to buy them.

The collaboration agreement between Robinhood and Grayscale is simple. Grayscale, as an investment company, is in charge of custody in exchange for a management fee. Buyers, on the other hand, receive a BTC or ETH share.

However, GBTC and ETHE are linked to the underlying prices better known as indices. Therefore, they can be expected to trade around one unit. However, the price difference is tangible when you compare the long-term results. Likewise, when the holders decide to sell, it will affect the price of the assets in question. That’s the whole point for Robinhood users. They have the opportunity to get the assets at a lower price at some point. At best, they can wait for the gap to close for profit.

Conclusion

Listing GBTC and ETHE is an important asset for Robinhood in front of its users. This is even an important step as it now allows users to exchange these two products within the platform.

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Emile Stantina

Interested in investing and financial markets after a business school in Chambéry, his passion for cryptocurrencies was evident. The blockchain is without a doubt the universal tool of tomorrow.

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