Over the past 12 months, the discount brokerage has experienced a sharp drop in cryptocurrency-related revenue as retailers pulled out of the market.
Digital asset manager Grayscale has made its flagship Bitcoin (BTC) and Ether (ETH) products available on Robinhood, a popular trading app open to millions of retail users.
Starting Friday, Robinhood users will be able to trade Bitcoin Trust (GBTC) and Ethereum Trust (ETHE) Grayscale directly from the app. GBTC shares offer investors direct access to Bitcoin as a security without the need to directly purchase or hold the digital asset. ETHE, on the other hand, operates as a public investment company whose shares reflect the value of the Ether held in trust.
Bitcoin Trust by Grayscale is the largest investment vehicle dedicated to the leading crypto asset. As of May 2, the trust managed $24.6 billion in assets. Meanwhile, Grayscale’s Ethereum Trust boasts over $329 million in assets.
Robinhood operates a discount brokerage offering retail investors seamless access to financial markets, including cryptocurrencies. In the first quarter, the company’s revenue fell 43% year-over-year, while sales from cryptocurrency trading fell 39%. Despite the downturn, Robinhood’s cumulative funded net accounts are up 27% year-on-year. Robinhood currently lists over 20 cryptocurrencies for trading on its platform.
Related: Robinhood cuts nearly 1 in 10 employees as stock hits record low
Cryptocurrency adoption by retailers peaked in the first half of 2021, a period that coincided with several all-time highs for bitcoin and the market as a whole. Since then, however, retail interest has declined significantly, as evidenced by Google search trends and the lack of new capital entering the market.