On May 6, 2022, financial services company Robinhood announced the listing of Grayscale’s Bitcoin Trust (GBTC) and Ethereum Trust (ETHE). Robinhood customers can now buy and sell shares and options of these trusts through their brokerage accounts with zero commissions, gaining exposure to bitcoin and ethereum without directly holding the digital assets.
Grayscale CEO Welcomes the Move
Barry Silbert, founder and CEO of Digital Currency Group (DCG), Grayscale's parent company, expressed excitement on Twitter: “Finally! You can now trade Grayscale Bitcoin Trust and Grayscale Ethereum Trust on Robinhood.” Grayscale’s official account also confirmed the partnership.
Robinhood’s Recent Crypto Expansion
The addition of GBTC and ETHE follows Robinhood’s launch of its crypto wallet in early April and the listing of shiba inu (SHIB), compound (COMP), polygon (MATIC), and solana (SOL) on April 12. Robinhood also expanded into Europe by acquiring UK-based crypto firm Ziglu.
Market Performance and Grayscale’s Pipeline
Year-to-date, GBTC is down 46.63% and ETHE is down 44.08%. Despite the downturn, Grayscale filed Form 10 with the SEC for new trusts: Zcash Trust, Stellar Lumens Trust, and Horizen Trust, signaling continued product innovation.
Grayscale’s ETF Conversion Efforts Face SEC Hurdles
Grayscale is actively seeking to convert its trusts into exchange-traded funds (ETFs). CEO Michael Sonnenshein warned that a complete denial of a bitcoin spot ETF could violate the Administrative Procedure Act. Chief Legal Officer Craig Salm explained that after conversion, GBTC shares would likely trade near NAV and be uplisted from OTCQX to NYSE Arca. Grayscale is also rallying public support to pressure the SEC for approval.
Prior to this, Robinhood co-founder and CEO Vladimir Tenev discussed DOGE scalability with Tesla’s Elon Musk, underscoring the brokerage’s deepening involvement in crypto.