- Robinhood plans to list the Bitcoin spot ETFs “as soon as possible,” with the CEO saying they offer “avenues for sophisticated risk management tools.”
- The approval of the ETFs has led to gains in the share price of Robinhood and Coinbase as investors believe that the ETFs will give the industry more credibility on Wall Street and beyond.
The Bitcoin spot ETF is finally here, and now, the real work begins. Crypto-related companies are now positioning themselves as major players in the ETF world, and Robinhood doesn’t want to be left behind. CEO Vlad Tenev announced today that the trading platform will be looking to list the spot ETFs “as soon as possible.”
The spot ETFs are expected to attract billions of dollars to the crypto industry, although the timeline has been the subject of debates in crypto circles as some believe it could take years. However, insiders have revealed that BlackRock has set aside at least $2 billion for its ETF. The Grayscale Bitcoin Trust, which will convert to a spot ETF, has $28 billion in assets under management.
This money will be looking for a home, and Tenev wants to position Robinhood as the ETF platform.
“We’ve been ahead of the curve in crypto access, and we plan to list these ETFs on Robinhood as soon as possible,” he posted on X.
Exciting update from Washington today! As a pioneer in offering spot crypto trading, Robinhood is thrilled about the @SECGov‘s decision to approve spot Bitcoin ETFs. We’ve been ahead of the curve in crypto access, and we plan to list these ETFs on @Robinhoodapp as soon as…
— Vlad Tenev (@vladtenev) January 10, 2024
According to Tenev, who co-founded Robinhood in 2013 alongside Baiju Bhatt, noted that the spot ETF will allow BTC to become a mainstream asset and attract ‘sophisticated’ investors. He stated:
This milestone enhances the integration of cryptocurrencies with traditional finance. It not only offers clarity but also opens avenues for sophisticated risk management tools that benefit our customers in managing their digital asset investments.
Tenev pledged to continue his company’s mission of educating investors on the products they invest in, including ETFs. The company’s guiding statement is “participation is power,” with the ETF, it will offer a cutting-edge trading platform for investors, Tenev stated.
He added:
Our goal remains to deliver the safest, most cost-effective, and trustworthy crypto experience in 2024. Stay tuned for more advancements as we continue to bridge the gap between crypto and traditional financial systems.
Robinhood, Coinbase Stocks Rise After ETF Approval
Publicly traded crypto companies made gains in their stock price after the SEC approved the ETF. Coinbase and Robinhood each gained around 4% in premarket trading as investors bet on the ETFs, drawing more users and billions of dollars in investment.
Coinbase CEO described the approvals as a “monumental step for the crypto industry.” He added:
There’s 52 million Americans who have been using crypto over the past decade, and I think they’ve been waiting for some kind of acknowledgment from the government, and the SEC in particular, that this asset class is here to stay — and they finally got that.
However, while Robinhood could be a direct beneficiary as it’s licensed to offer ETF products, Coinbase doesn’t have that privilege. The exchange has been fighting allegations that it provided securities products without the SEC’s license, and an ETF falls squarely under securities.
“We see the impact of a Bitcoin ETF as having both positive and risky elements for Coinbase,” says JPMorgans Kenneth Worthington. He added:
We think the approval of the Bitcoin ETFs is potentially a lose/lose situation for Coinbase as we see a Bitcoin ETF, if particularly successful, as a competitor to Coinbase.”
