Robinhood will sell BSV on the market after removing Craig Wright’s Bitcoin variant

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Users of popular stock and crypto trading app Robinhood are reacting to news that the platform will remove Craig Wright’s Bitcoin SV (BSV) on January 25.

A Robinhood spokesperson further told CryptoSlate that any BCV held on the platform by customers after the deadline will be “sold at market value and credited to their Robinhood buying power.”

The change is part of Robinhood’s routine review of its crypto products, which means that BSV will continue to be tradable on the app until the deadline. However, he also pointed out that investors residing in Hawaii, Nevada and New York have limited abilities to trade BSV.

The Robinhood spokesperson further stated:

“We have a rigorous framework in place to help us regularly review the crypto we offer… No other coins are affected by this change and all of our client cryptos remain safe on Robinhood. We are extremely selective about the active ingredients we offer…”

The price of BSV opened on January 11 at $44.95, but fell 16.97% at press time to $37.29. Bitcoin is also experiencing a “red day” with the flagship crypto down 0.91%. However, Bitcoin’s price decline is still well above the $17,000 mark, as the retracement did not reflect BSV’s losses.

Bitcoin SV and Craig Wright

Bitcoin SV is a hard fork of Bitcoin Cash and was created by the infamous Craig Wright, who claims to be Satoshi Nakamoto, the founder of Bitcoin. Wright has positioned himself in numerous legal battles with those who challenged his claim to the Bitcoin throne. Thus, many investors applaud BSV’s withdrawal from popular exchanges.

Craig Wright had no direct comment on the delisting, which coincided with a major BSV sale. However, he tweeted several motivational quotes from Benjamin Franklin and Plato, adding:

“While I can’t say I’ve been perfect here, I manage to listen first and talk after a lot more. I’ve been following that and so far I’m making good progress.

BSV was added to Robinhood in November 2018 as a result of the BCH fork, with BSV distributed to all BCH holders at the time. Therefore, BSV will have traded on Robinhood for about five years when it is removed.

Why is Robinhood removing BSV from the list?

According to the latest filings by Robinhood, the platform holds $9.36 billion in crypto across all assets. It is unclear what percentage of this figure is tied to Bitcoin SV. However, Bitcoin, Ethereum and Dogecoin make up the bulk of the holdings at $8.145 billion.

Therefore, Bitcoin SV will represent a portion of the remaining $1.216 billion held on behalf of clients. Robinhood does not disclose the value of Bitcoin SV held in its custody.

Given Robinhood’s previous run-ins with the SEC, it is possible that Bitcoin SV will be removed due to a desire to reduce its risk exposure to certain types of assets. In Robinhood’s latest 10Q filing with the SEC, Bitcoin SV was identified as a potential risk factor for the company.

“In August 2021, hackers were able to momentarily take over the Bitcoin SV network, allowing them to spend coins they didn’t have and preventing transactions from completing.

Any loss of private keys to, or hacking or other compromise of the hot or cold wallets we use to store our clients’ cryptocurrencies could result in the total loss of our clients’ cryptocurrencies.

Bitcoin SV may feel an additional price impact on January 25 if a large amount of BSV remains on the platform past the deadline.

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