Executive Summary
With Robinhood's groundbreaking announcement to issue token-based stocks for European users via Arbitrum(1), the optimal strategy to capture the resulting surge in Arbitrum activity is taking a long position in Camelot DEX's $GRAIL token. This represents a pure beta play for exposure to increased Arbitrum ecosystem activity through a token fundamentally tied to the chain's success as the dominant native DEX (excluding Uniswap) with deep ecosystem integrations.
We anticipate a significant rerating of this name in the near term (1 - 2 months) as the market recognizes and more fully appreciates the catalyst. While this has already started today as $GRAIL is up ~75% in the past 2 days, this catalyst has legs: with Robinhood processing $142.9B monthly in equities volume alone(2), even partial migration of this volume to on-chain infrastructure could represent an order-of-magnitude increase in Arbitrum financial activity.