eToro and Robinhood Modify U.S. Cryptocurrency Offerings Amidst Regulatory Changes

The global cryptocurrency landscape is witnessing significant shifts, with leading trading platforms, eToro and Robinhood, adjusting their U.S. cryptocurrency offerings. Both platforms are responding to the rapidly evolving regulatory environment in the United States, affecting popular cryptocurrencies such as Algorand (ALGO), Decentraland (MANA), Dash (DASH), Polygon (MATIC), Solana (SOL), and Cardano (ADA).

Starting at 6:00 AM ET, Wednesday, July 12, 2023, eToro U.S. customers will not be able to open new positions in Algorand, Decentraland, Dash, and Polygon. Despite the changes, users will still have the ability to hold and sell existing positions in these cryptocurrencies.

Just a month earlier, on June 9, Robinhood also made headlines when it announced the delisting of Solana, Cardano, and Polygon. This follows recent charges by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase, alleging that these platforms traded unregistered securities. Given these circumstances, analysts predict a further decline in cryptocurrency trading activity on Robinhood.

Both eToro and Robinhood’s decisions highlight the complex nature of global cryptocurrency regulations and the need for platforms to adapt swiftly to protect user interests and ensure compliance. The trading platforms’ strategic shifts are significant for users seeking updates on cryptocurrency strategies amidst a dynamic U.S. regulatory environment.

Despite the changes, eToro remains committed to promoting a diverse range of asset classes, including stocks, Exchange Traded Funds (ETFs), and options, reinforcing their support for crypto assets. The company also pledges to work closely with regulators around the world to shape the future of the crypto industry and advocate for access for everyday investors.

This news reaffirms the unique challenges cryptocurrency platforms face while navigating regulations. Changes to crypto offerings, especially in the U.S., are provoking discussions about the future of crypto regulation. As the regulatory landscape continues to evolve, investors and users will be closely monitoring platforms like eToro and Robinhood for further updates.

eToro encourages customers with queries about these changes to contact its customer service team. Meanwhile, industry watchers anticipate more platforms to realign their strategies in response to changing regulations, impacting the availability and trading of various cryptocurrencies.


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Wealthfront To Enable Cryptocurrency Investments for its Clients

Wealthfront asset management company is examining options to enable customers to add cryptocurrencies to their investment portfolio.

The US asset manager has announced that it will start allowing its clients to invest in cryptocurrencies later this year. The development is the latest indication of growing acceptance of cryptocurrencies by mainstream finance.

The California-based company stated that beginning this week, clients will also be able to develop their own portfolios, choosing from various exchange-traded funds (ETFs) vetted by the Wealthfront team.

The move marks a significant shift of Wealthfront whose investment strategy has been traditionally known as more conservative and long term, automatically allocating client assets into various ETF-based portfolios.

The expanded portfolio reflects further enhanced Wealthfront’s investment portfolios, which will continue to allow customers to add the company’s automated investment services such as rebalancing and tax-loss harvesting as well as access to the firm’s financial planning tools and fiduciary advice at no extra cost.

However, it is still not known which cryptocurrencies that Wealthfront would invest in.

Dan Carroll, Wealthfront’s co-founder and chief strategy officer, stated that the change reflected a wider push by financial technology startups to offer a broader range of services within their platforms as well as an increasing desire from Gen Z and millennial investors to make some investment choices.

In an interview with Reuters, Carroll said: “Wealthfront will be the place to invest responsibly, not some Wild West arcade. We can do it in a fiduciary way. We care what is in your best interests. We won’t let you put 100% of your portfolio in crypto.”

Based on regulatory filing in October 2020, Wealthfront company, whose services are available to US consumers, has about 357,425 accounts and assets under management of around $16 billion.

The Rise of Retail Crypto Investments

Wealthfront’s latest move comes at a time when retail trading of cryptos and stocks experiences a boom. Online platforms such as Coinbase Global Inc, Square Inc’s Cash App, Venmo, and Robinhood have seen their business boom over the previous year as young homebound consumers took to selling and buying financial assets online during the COVID-19 lockdowns.

Cryptocurrency is increasingly seen as an obvious way to increase user numbers on fintech apps and build new revenue streams. Fintech apps that offer cryptocurrencies are making money.

Square’s Cash App launched cryptocurrency purchases in mid-2018 and reported $308 million in Bitcoin revenue in its most recent earnings report. London-based Revolut started offering cryptocurrencies to users in 2017. While Robinhood began offering crypto services in February 2018, PayPal’s Venmo started allowing users to sell, hold and buy cryptocurrencies on its app this month. Such developments inspire more mainstream adoption of the asset class.  

Image source: Shutterstock


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