On-line fintech brokerage agency Robinhood is about to affix the Bitcoin ETF craze, saying the ETF approval is a key consider advancing the mixing of crypto with conventional finance.
Though Tenev didn’t present a selected timeframe, he emphasised that the approval of spot crypto ETFs not solely brings readability but additionally paves the best way for classy threat administration instruments.
“It [the approval] not solely affords readability but additionally opens avenues for classy threat administration instruments that profit our clients in managing their digital asset investments.”
Along with shares, choices, and cryptocurrencies, Robinhood additionally affords buying and selling with exchange-traded funds (ETFs) resembling Invesco Nasdaq-100 ETF, Vanguard Mega Cap Progress ETF, iShares U.S. Residence Development ETF, and lots of others.
Analysts anticipate that the approval of a Bitcoin exchange-traded fund, serving as a method for buyers to purchase the cryptocurrency by means of conventional brokerage accounts, could possibly be advantageous for Robinhood.
Dan Dolev, a senior analyst at Mizuho Securities, said in December 2023 that the approval could possibly be notably useful for Robinhood, on condition that its main income sources come from inventory buying and selling. Competing exchanges may even see diminished volumes as customers choose to transact Bitcoin immediately on platforms like Robinhood, the analyst emphasised.
With the current approval of spot Bitcoin ETFs, consideration is now turning to the upcoming Bitcoin halving, which is predicted to happen in April, and the inflows into conventional finance funding autos linked to BTC. Whereas monetary giants like JPMorgan anticipate a gradual improve in capital curiosity, crypto-focused entities resembling Mike Novogratz’s Galaxy Digital foresee vital worth surges, with projections reaching as excessive as 74%.