Robinhood made OpenAI tradable… but is it legit

byrn
By byrn
3 Min Read


Good evening, ladies, gentleman, and crypto degenerates.

Reporting live from the heart of the action (my desk) – we’ve just confirmed two new developments in stories already covered this week.

It’s the talk of the town (group chats) right now, and here’s what you need to know:

SpongeBob Bikini Bottom news reporter

1/ Grayscale ETF

On Wednesday, we told you the SEC approved Grayscale’s new crypto ETF that features Bitcoin, Ethereum, Solana, XRP, and Cardano.

Well, they approved it technically… but then put a “stay” on it, which means Grayscale can’t actually launch the ETF yet.

Bloomberg ETF analyst Eric Balchunas thinks the SEC just wants to finalize crypto ETF listing rules before letting this one go live.

So, the situation: approved in theory, not happening in practice. For now.

2/ OpenAI vs. Robinhood

On Tuesday, we talked about Robinhood launching tokenized US stocks and ETFs in Europe.

What we didn’t point out then, though, is that some of those tokens represent private stocks – companies you can’t invest in unless you have VC connections or millions to invest.

One of those? OpenAI.

So, with that launch, Robinhood gave regular retail investors a way to get price exposure to OpenAI – something they can’t do by buying shares directly.

Pretty damn sick, amirite? Well… not everyone agrees:

Basically, what OpenAI’s saying is that even if Robinhood’s tokens are backed 1:1 by real OpenAI shares, you’re not legally an OpenAI shareholder.

And what does that mean for you?

👉 You’re trusting Robinhood, not OpenAI

When you buy one of the tokens, you’re not directly owning a piece of OpenAI.

You’re just counting on Robinhood (or its partner) to hold OpenAI shares somewhere.

👉 No shareholder rights

You don’t get voting rights, a say in decisions, or access to OpenAI’s financials. You just track the price.

👉 Liquidity isn’t guaranteed

These tokens only have value if Robinhood keeps the market open.

If they stop or demand drops, you might not be able to sell.

Snoop Dogg concerned

At the same time, hey, at least it’s an option. If you just want to exposure to OpenAI’s price, then fine. But make sure you understand the risks before jumping in.

And with that, I’ll return you to your regularly scheduled scrolling 🎙️

This was the Daily Squeeze, thanks for reading, and good luck out there.



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