For years, trading app Robinhood listed just a handful of cryptocurrencies. Over the past month, it’s brought that number to 11, and it’s now also making available two equities assets tied to the price of crypto.

As of today, Robinhood users can buy and sell Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) via the app.

GBTC and ETHE are investment products that trade like a stock and allow investors to get exposure to the price of Bitcoin and Ethereum, respectively, without actually having to buy them. Investment firm Grayscale takes care of the custody in exchange for a management fee, and buyers get a “share” of Bitcoin or Ethereum—or something like it.

But while both GBTC and ETHE are ostensibly tied to the price of the underlying cryptocurrencies, they rarely trade on a 1:1 basis. Part of the reason for the difference in price is long lockup periods; when large holders eventually sell, it can affect the price on the open market.

That discrepancy may help explain why Robinhood traders—who don’t have to worry about custody issues as it is—may be interested in the assets: They can get them for cheap and hope the gap closes.

According to data from Ycharts, ETHE is selling at a discount of 26.18% as of Friday, meaning it’s 26% cheaper to buy ETHE than it is to buy Ethereum. GBTC, meanwhile, is trading at a 25.5% discount.

If the U.S. Securities and Exchange Commission accepts Grayscale’s proposal to transition the Bitcoin trust into a Bitcoin exchange-traded fund—that heavy discount would likely disappear as ETFs’ structure allows them to…


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