Although Robinhood dismissed 9% of its workers in April, its cryptocurrency business continues uninterrupted. Recently, the Grayscale BTC Trust and ETH Trust have been added to Robinhood’s list of supported assets. Also, Grayscale has submitted new cryptocurrency-based assets to the Securities and Exchange Commission (SEC) for evaluation.
Traders On Robinhood Are Getting More Exposure To The Crypto Market
Grayscale’s BTC and ETH Trust are now both available for purchase on Robinhood. This follows on the heels of Robinhood’s retrenchments and Grayscale’s legal fight with the U.S. regulator over the creation of a BTC spot exchange-traded fund. Users of Robinhood now have more possibilities for gaining exposure to the cryptocurrency market.
With the addition of functionality for Grayscale’s products to its platform, the renowned retail trading program has become even more popular. This listing is due to Robinhood’s results in Q1 2022, which were disclosed last week, although the company reported a 43% decrease in net sales from last year.
Last year was a rough one for Robinhood. The company had deteriorated to the extent that it discharged about 9% of its workers. This decision was made before the company reported its first-quarter financial results. Presently, Robinhood’s share price is slightly around $10, which is far from its peak of $85 recorded last year. Jason Warnick, the firm’s Chief Financial Officer, mentioned the deficits in its first-quarter report:
“We are witnessing an impact on our consumers as a consequence of the macroeconomic situation, which is evident in our performance this quarter. However , we’ve made significant headway on our long term objectives, which we are continuing to pursue relentlessly.”
Grayscale Submits Application To SEC
Meanwhile, Grayscale, the world’s biggest cryptocurrency asset manager, submitted a Form 10 with the watchdog yesterday for the Grayscale Zcash Trust, the Stellar Lumens Trust, and the Grayscale Horizen Trust. This is the latest development after Vanguard, which controls $7 trillion worth of assets, stated last April that it will be discontinuing coverage for ETHE and GBTC.
Furthermore, Grayscale has submitted an application to SEC to transform its Grayscale BTC Trust to BTC spot ETF. The Commission has multiple times refused to allow it due to fears about the potential for market modification and the lack of adequate consumer protection.
On the 28th of March, the CEO of digital asset management, Michael Sonnenshein, stated that if the SEC did not accept the company’s BTC spot ETF proposal, the company might consider filing a lawsuit.