Good night, women, gentleman, and crypto degenerates.
Reporting dwell from the center 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 authorized Grayscale’s new crypto ETF that options Bitcoin, Ethereum, Solana, XRP, and Cardano.
Properly, they authorized 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 dwell.
So, the state of affairs: authorized 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 symbolize personal shares – firms you may’t spend money on until you will have VC connections or tens of millions to speculate.
A type of? OpenAI.
So, with that launch, Robinhood gave common retail traders a method to get value publicity to OpenAI – one thing they’ll’t do by shopping for shares immediately.
Fairly rattling sick, amirite? Properly… 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
While you purchase one of many tokens, you’re indirectly 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 selections, or entry to OpenAI’s financials. You simply monitor the value.
👉 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 to promote.
On the similar time, hey, at the least it’s an choice. In the event you simply wish to publicity to OpenAI’s value, then positive. However be sure you perceive the dangers earlier than leaping in.
And with that, I’ll return you to your frequently 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 mates – they in all probability don’t know. I ponder who might repair that… 😃🫵
Unfold the phrase and be the hero you understand you might be!
