Good night, girls, gentleman, and crypto degenerates.
Reporting stay from the guts of the motion (my desk) – we’ve simply confirmed two new developments in tales already lined this week.
It’s the discuss of the city (group chats) proper now, and right here’s what that you must know:
1/ Grayscale ETF
On Wednesday, we instructed you the SEC accepted Grayscale’s new crypto ETF that options Bitcoin, Ethereum, Solana, XRP, and Cardano.
Effectively, they accepted it technically… however then put a “keep” on it, which suggests Grayscale cannot truly launch the ETF but.
Bloomberg ETF analyst Eric Balchunas thinks the SEC simply needs to finalize crypto ETF itemizing guidelines earlier than letting this one go stay.
So, the state of affairs: accepted in idea, not occurring in observe. For now.
2/ OpenAI vs. Robinhood
On Tuesday, we talked about Robinhood launching tokenized US shares and ETFs in Europe.
What we did not level out then, although, is that a few of these tokens characterize personal shares – corporations you’ll be able to’t put money into until you could have VC connections or thousands and thousands to speculate.
A type of? OpenAI.
So, with that launch, Robinhood gave common retail traders a technique to get value publicity to OpenAI – one thing they’ll’t do by shopping for shares immediately.
Fairly rattling sick, amirite? Effectively… not everybody agrees:
Mainly, what OpenAI’s saying is that even when Robinhood’s tokens are backed 1:1 by actual OpenAI shares, you’re not legally an OpenAI shareholder.
And what does that imply for you?
👉 You’re trusting Robinhood, not OpenAI
Once you purchase one of many tokens, you’re in a roundabout way proudly owning a chunk of OpenAI.
You’re simply relying on Robinhood (or its associate) to carry OpenAI shares someplace.
👉 No shareholder rights
You don’t get voting rights, a say in choices, or entry to OpenAI’s financials. You simply monitor the worth.
👉 Liquidity isn’t assured
These tokens solely have worth if Robinhood retains the market open.
In the event that they cease or demand drops, you won’t be capable of promote.
On the identical time, hey, no less than it’s an choice. In the event you simply need to publicity to OpenAI’s value, then fantastic. However ensure you perceive the dangers earlier than leaping in.
And with that, I’ll return you to your commonly scheduled scrolling 🎙️
This was the Every day Squeeze, thanks for studying, and good luck on the market.
Now you are within the know. However take into consideration your folks – they in all probability don’t know. I’m wondering who may repair that… 😃🫵
Unfold the phrase and be the hero you realize you’re!
