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Robinhood lists Grayscale’s GBTC and ETHE products

Should I buy Robinhood IPO
Should I buy Robinhood IPO

Grayscale, the world’s largest digital asset manager, has announced making its flagship Bitcoin and Ether products available on the Robinhood exchange. These products will be readily available on the Robinhood app.

Robinhood is a popular trading platform for retail traders. After listing Dogecoin (DOGE), the exchange became quite popular in the crypto space last year. The exchange later listed Shiba Inu (SHIB) last month.

Grayscale’s GBTC and ETHE available on Robinhood

Since Friday, the Grayscale Bitcoin Trust (GBTC) and the Ethereum Trust (ETHE) have been available on the Robinhood app. Shares of the GBTC product offer investors direct exposure to Bitcoin. The product is ideal for investors who want to invest in Bitcoin but do not want to be exposed to the volatility of the cryptocurrency.

On the other hand, the ETHE product runs as an open-end investment firm where the shares depict the value of ETH held in trust. The Grayscale Bitcoin Trust is the largest investment vehicle that focuses on the world’s largest cryptocurrency.

By May 2, the Grayscale Bitcoin Trust had $24.6 billion in assets under management, while the Grayscale Ethereum Trust had more than $329 million in assets. The large sum shows the dominance of Grayscale as a digital asset manager.

Robinhood records a dip in sales and revenues

Robinhood has set itself apart by removing the barrier for entry to retail traders in the stock and crypto markets. Robinhood operates as a discount brokerage platform, and during the first quarter of the year, the firm reported a 43% decline in its year-over-year revenues. During the same period, the sales dropped by 39%.

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Despite the decline in revenue and sales, the Robinhood net cumulative funded accounts gained 27% year-over-year. Currently, Robinhood has listed more than 20 cryptocurrencies on its crypto exchange trading platform.

The positive performance of the Robinhood exchange in 2021 could be attributed to a bullish market that attracted many retail traders. During the first half of 2021, retail traders flocked the market, taking cryptocurrency prices to all-time highs.

However, after the market recorded a major dip in May last year, retail interest slowed down, as many liquidated their holdings and closed accounts on exchange platforms. This year, the retail interest has been especially low as the market has recorded a significant plunge. Therefore, the lack of new capital entering the market could be behind Robinhood’s decline in revenues and sales in Q1.

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