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Robinhood and MicroStrategy's stocks declined after their exclusion from the S&P 500, while Interactive Brokers' stock rose upon its inclusion.
Kraken consulted with the SEC to establish a regulatory framework for tokenized assets, reflecting a growing industry trend.
Trump Media formed a significant $6.42 billion partnership with Crypto.com to create a digital asset treasury, advancing its crypto strategy.
Cryptocurrency and the financial sector saw significant changes today as Robinhood and MicroStrategy were not chosen to join the S&P 500. Kraken consulted with the SEC on the rising disclosure of tokenized assets.
Meanwhile, Trump Media announced a significant partnership with Crypto.com, advancing toward the strategy of digital asset management. These changes illustrate the dynamic nature of the financial world, as it moves towards a mix of old market rules and new technologies.
Robinhood Markets and Strategy (MicroStrategy) stocks fell after the two were not included in the recent S&P 500 rebalance, with Interactive Brokers Group replacing Walgreens Boots Alliance.
The omission came after much anticipation that Robinhood, a crypto and stock trading platform, would enter the grouping, particularly given that its stock has surged more than 190% this year.
Meanwhile, Strategy (MSTR), which has gained on the increased value of Bitcoin, also experienced a slump in the market and has lost the opportunity of being listed on the S&P 500.
Membership in the S&P 500 is considered a milestone of success by companies, and it introduces them to institutional investors who follow the index. The companies have to fit several factors, such as having a market cap of at least $22.7 billion, having a US-based headquarters, and being listed on a major stock exchange.
Robinhood's market cap just surpassed this mark, thanks to the new wave of retail investor interest. Nevertheless, despite good performance, the company failed to meet other required criteria to be included. Equally, Strategy, which has managed to prosper due to its Bitcoin portfolio, has experienced volatility over the past few months as the firm's shares move in line with Bitcoin's.
The addition of Interactive Brokers, on the contrary, caused its stock value to increase by 3.9% during the after-hours trading. As news of the move spread through the market, the rest of the S&P 500 closed 0.4% lower, indicating that the decision had a substantial impact on the mood of market participants.
On other news, Kraken, one of the leading crypto exchanges, met with the Crypto Task Force at the US Securities and Exchange Commission regarding tokenization. The discussion focused on the regulatory framework of tokenized stocks and conventional assets and examined the legal and operational issues of such systems.
Kraken is pushing for regulatory certainty as established market participants are growing in their calls to regulate more tightly tokenized stocks, which can also be traded 24/7, unlike securities.
Although tokenized assets are still in their early stages, Kraken's actions are in line with the larger trends in the crypto industry, where services such as Robinhood are starting to offer tokenized stocks to their customers.
Currently, the value of the market for tokenized assets is estimated at up to $360 million, and its share in the total volume of tokenized Real World Assets (RWAs) amounts to only a fraction.
Trump Media Group announced a business partnership with Crypto.com and Yorkville Acquisition. The transaction will create a new company, Trump Media Group CRO Strategy, specialising in accumulating a digital asset treasury valued at $6.42 billion.
This treasury will mainly contain Cronos (CRO) cryptocurrency, which is owned by Crypto.com, and plans to extend this volume with the help of one billion CRO tokens and a credit line of 5 billion in Yorkville. The partnership is a significant step by Trump Media in the crypto space, further strengthening its relations with Crypto.com.
The agreement follows some criticism of Crypto.com regarding governance, especially the decision to cancel a token burn initiative. The deal reflects a trend in the convergence of mainstream media businesses and the crypto industry. The new business targeting staking and income-earning cryptocurrencies will help the company correlate better with the digital asset industry.
Also Read: Crypto News Today: Bitcoin, Ethereum, XRP Tumble, Know Why?
