Robinhood’s 2% Incentive Triggers Massive ETH Unstaking as Investors Embrace Alternative

Ethereum unstaking surged in July, and Ark Invest CEO Cathie Wood links it to a growing preference for an alternative offering from Robinhood, a versatile crypto trading platform.

According to Wood, Robinhood offers a 2% match for crypto transfers, which has become an incentive for many Ethereum users to opt for the service over staking.

Investors found a new way to double profits

In her latest post on X, Wood noted that Venture Capitalists (VCs) and other investors are exploring the profitable opportunity provided by Robinhood by shifting staked ETH into Treasury companies via Direct Access Trading (DAT). That system enables them to double their money when lockups expire.

Wood cited Strategy’s MSTR and Bitmine’s BNMR as typical examples of how advisors use Treasury stocks to give their clients exposure to BTC and ETH.

Related: Celsius Announces Ethereum Unstaking Plans, Moves 10K ETH to Coinbase

Typically, a rising trend in ETH unstaking would trigger concerns about the digital asset’s long-term health, as it could signal an intent to sell. However, the fact that institutional-class investors are the ones making this move suggests it is a sophisticated capital rotation, not a panic exit.

Robinhood’s incentive could encourage more ETH investment

In the context of Wood’s observation, the latest offering by Robinhood attracted institutional investors, most of whom are renowned for high-volume transactions and long-term holdings. Additionally, an optimistic projection from pro-Ethereum analysts suggests the 2% extra incentive could encourage investors to purchase more ETH and boost their returns, which could explain the increasing demand for ETH over the past few weeks.

Related: Ethereum Bulls Could Reject Analyst’s Projected Consolidation to $3,300

Ethereum traded at $3,750 at the time of writing, having rebounded from a recent price pullback. The cryptocurrency has regained its bullish momentum following a 7% rally within the past 72 hours. ETH’s current price is less than 3% from its recent swing high, which serves as a crucial resistance in an upside trajectory and could play a significant role in the altcoin’s short-term future.