Etoro's Recent IPO Offers International Exposure and Modest EBITDA Multiples

eToro's recent IPO offers international exposure and modest EBITDA multiples. The company has benefited from market volatility, with a 2x rebound in equity markets and healthy crypto trading activity. Robinhood's digital brokerage has also seen a significant surge in activity.

Robinhood has recently expanded its offerings to include tokenized U.S. stocks, crypto futures, and staking, marking a significant shift towards crypto-native finance. This move comes after the company launched its own layer-2 blockchain, Robinhood Chain, to support 24/7 trading and asset self-custody. The platform's new features aim to cater to both active and passive crypto users, reflecting its broader push into digital assets.

Tokenized U.S. stocks, available to European users, offer price tracking and dividend payouts without commission fees. These tokens are hosted on Arbitrum technology initially but will soon be supported by Robinhood Chain, which aims to lower costs and enable 24/7 trading. Crypto perpetual futures, also available to European users, allow for around-the-clock trading of digital assets like Bitcoin with no expiration. Meanwhile, staking options for Ether (ETH) and Solana (SOL) are now available to U.S. users, providing passive income without the need for complex DeFi tools.

Robinhood's new blockchain strategy involves always-on trading, faster and cheaper settlement, fractional and global access, and blending with crypto. Tokenized stocks provide trade flexibility, access to private firms, dividend payouts, and no requirement for a wallet. However, they also come with limitations such as no voting rights, no direct ownership, limited liquidity, and regulatory uncertainty. Crypto perpetual futures, while offering around-the-clock trading and leverage, carry elevated risks, including volatility, leverage, and complex mechanics.

Robinhood's expansion into crypto and tokenized stocks positions it to compete with established platforms like Coinbase. Both platforms have unique strengths, with Robinhood focusing on equities and blockchain tools, and Coinbase starting with crypto and building towards tokenized finance. The regulatory landscape for tokenized assets and futures varies between the EU and the U.S., with the Markets in Crypto-Assets Regulation (MiCA) providing a unified structure in the EU, and the Securities and Exchange Commission (SEC) and CFTC overseeing different aspects in the U.S.

In conclusion, Robinhood's new offerings give users more ways to trade and earn directly in the app, without needing extra platforms. Its new blockchain, Robinhood Chain, will support faster trades, 24-hour access, and self-custody. This marks a clear shift towards crypto-based investing, with potential benefits and risks for investors. As regulators respond to proposals like Robinhood's, the company's offerings may expand further, bringing digital assets into everyday trading.

References:
[1] https://www.ccn.com/education/crypto/robinhood-tokenized-stocks-crypto-futures-staking/