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 it’s essential 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 really 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 scenario: accepted in concept, 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 – firms you may’t put money into except you might have VC connections or tens of millions to speculate.
A kind of? OpenAI.
So, with that launch, Robinhood gave common retail traders a technique to get value publicity to OpenAI – one thing they will’t do by shopping for shares instantly.
Fairly rattling sick, amirite? Effectively… not everybody agrees:
Principally, 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
While you purchase one of many tokens, you’re circuitously proudly owning a chunk of OpenAI.
You’re simply relying on Robinhood (or its accomplice) to carry OpenAI shares someplace.
👉 No shareholder rights
You don’t get voting rights, a say in selections, or entry to OpenAI’s financials. You simply observe 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 have the ability to promote.
On the similar time, hey, not less than it’s an choice. If you happen to simply need to publicity to OpenAI’s value, then high-quality. However be sure to perceive the dangers earlier than leaping in.
And with that, I’ll return you to your commonly scheduled scrolling 🎙️
This was the Each 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 ponder who might repair that… 😃🫵
Unfold the phrase and be the hero you understand you’re!
