Robinhood to add support for spot Bitcoin ETF “as soon as possible”
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Online fintech brokerage Robinhood is about to join the Bitcoin ETF craze, saying that ETF approval is a key factor in promoting the integration of cryptocurrencies and traditional finance.
Robinhood CEO Vlad Tenev announced the company’s plans in a post on X on January 11, stating that the broker aims to list all approved spot Bitcoin exchange-traded funds “as soon as possible.”
Although Tenev did not provide a specific timeline, he emphasized that the approval of spot crypto ETFs not only brings transparency, but also paves the way for sophisticated risk management tools.
“Not only does it (the approval) provide clarity, it also opens up access to sophisticated risk management tools to enable our clients to manage their digital asset investments.”
Vlad Tenev
In addition to stocks, options, and cryptocurrencies, Robinhood also offers trading in exchange-traded funds (ETFs) such as the Invesco Nasdaq-100 ETF, Vanguard Mega Cap Growth ETF, iShares US Home Construction ETF, and more.
Analysts expect the approval of a Bitcoin exchange-traded fund as a way for investors to purchase the cryptocurrency through traditional brokerage accounts could be a boon for Robinhood.
Dan Dolev Senior Analyst, Mizuho Securities explain In December 2023, this approval may be particularly beneficial to Robinhood, given that its main source of revenue comes from stock trading. The analyst highlighted that trading volumes on competing exchanges may be reduced as users choose to trade Bitcoin directly on platforms such as Robinhood.
With the recent approval of a spot Bitcoin ETF, attention now turns to the upcoming Bitcoin halving, expected to occur in April, and inflows into traditional BTC-related financial investment vehicles. While financial giants such as JPMorgan anticipate a gradual increase in capital interest, crypto-focused entities such as Mike Novogratz’s Galaxy Digital expect significant price increases, with forecasts as high as 74%.