Robinhood added Grayscale ETH and BTC trusts after recently leaning heavily on the crypto industry, so today we’re taking a closer look at our latest crypto news.

For a few years, trading app Robinhood listed a few cryptocurrencies, but last month it increased that number to 11 and now provides two stock investments related to the price of crypto. Starting today, Robinhood Grayscale added ETH and BTC Trusts and now users can buy GBTC and ETHE through the app. Both investment products trade like stocks, allowing investors to participate in the price of EBTC and ETH without actually buying them. The investment firm took care of the custody for a management fee and the buyers got a share of BTC and ETH. While both GBTC and ETHE are price-pegged to the cryptocurrencies, which rarely trade on a 1:1 basis, part of the price difference lies in the long lock-up periods when the larger holders sell, affecting the price of the cryptocurrencies in the open market.

The discrepancy could explain why Robinhood traders don’t have to worry about the custodial issues, but can get these assets at bargain prices and hope the gap will close. According to Ycharts data, ETHE is selling at a discount of 26.1%, meaning that buying ETHE is 6% cheaper than Ethereum, while GBTC is trading at a discount of 25.5%. If the SU SEC accepts Grayscale’s proposal to convert the BTC Trust into a BTC ETF, the discount will disappear as ETFs allow them to trade closer to the asset’s price. However, the SEC has not approved BTC-backed ETFs.

Since the departure of Robinhood crypto COO Christine Brown, the brokerage house has rolled out some significant additions to its digital asset offerings. It added Polygon, sHIB, Compound and Solana to the lists of bitcoin, bitcoin cash, ethereum, dogecoin, bitcoin SV and litecoin, while a week earlier at the BTC conference in 2022 it announced its intention to broadcast the LN to use faster and cheaper transactions. It also revealed that users will be able to transfer Robinhood’s crypto assets, which the company has been promising since early 2021.

GBTC transition
GBTC’s transition to a Bitcoin ETF. Source Grayscale

Crypto was one of the few bright spots for the company, which reported an 18% drop in revenue and laid off 9% of its workforce for the first quarter. However, revenue increased to $45 million in the quarter from $48 million, but was still down 39% year over year.

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