Coinbase Shares Soar 10% In BlackRock Crypto Deal


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Author: Jeffrey Taylor

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Shares of Coinbase soared Thursday after the crypto exchange announced a partnership with BlackRock. A partnership that will allow its institutional clients to buy bitcoin.

Coinbase shares rose 10%. Earlier in the day they jumped as much as about 40%. 

Services in the company’s Prime offering will be available to clients of BlackRock’s portfolio management. A platform for institutional investors, Aladdin, the company said on its blog. 

The Coinbase Deal

Coinbase will provide crypto trading, custody, prime brokerage and reporting capabilities. BlackRock is the largest asset manager in the world with more than $8 trillion under management.

The ticker COIN also became one of the most mentioned names on Thursday on Reddit’s WallStreetBets chat room.

Our institutional clients are increasingly interested in gaining exposure to digital asset markets. And are focused on how to efficiently manage the operational lifecycle of these assets.” Joseph Chalom, global head of strategic ecosystem partnerships at BlackRock, said in a statement. 

The partnership will let them “manage their bitcoin exposures directly in their existing portfolio management and trading workflows.”

What This Coinbase Deal Mean For The Crypto Community

This interest is a beacon in the night for the crypto community. The industry has suffered a slew of hacks and breaches, including attacks on Solana and Nomad this week alone. Crypto has also gone down with the broader sell-off in risk assets and is further handicapped by the financial contagion. One that stemmed from the Terra collapse in the spring. However many investors maintain that institutional adoption is key to increasing the stability of bitcoin and the broader crypto market.

Coinbase shares have been on a tear lately and analysts have not been sure why. The stock jumped 20% on Wednesday. The shares were still down nearly 70% for 2022 through Wednesday’s close.

Furthermore, the jump in Coinbase this week could be related to investors who were betting against the stock scrambling to cover their positions. Especially those who use trading bots like eToro and Plus500. More than 22% of Coinbase’s shares which are available for trading are sold short, according to FactSet. So as the stock has run, these investors have to buy back the shares to cover their losses. This will eventually lead to further fueling the gains.

Despite the doom in the market and decline in Coinbase’s share price, Citi on Thursday called it the fizzle before the sizzle. And said it’s on the lookout for a stock reversal over the next three months.

There are some good developments brewing,” analyst Peter Christiansen said in a note to investors. He went on to cite potential stablecoin regulation and Ethereum’s long-awaited transition to proof-of-stake.

Top Cryptocurrencies To Be Launched On Binance

Every project we’re taking a look at has garnered a ton of attention from investors on decentralized exchanges like PancakeSwap. This means that they could be a new cryptocurrency listing on Binance in the near future. They include:

Battle Infinity – Overall best crypto that could list on Binance.

Lucky Block – Exciting crypto project with frequent prize draws.

Woonkly Power – Metasocial network that could list on Binance.

DigitalFinancialExch – Insured cross-asset platform.

IMOV – Inclusive fitness project.

In order to appeal to investors of every disposition, Battle Infinity will be broken up into six different platforms. All six platforms exist within the IBAT ecosystem. The IBAT Premier League (a fantasy sports league), IBAT Battle Swap (a decentralized exchange), IBAT Battle Market (NFT marketplace for in-game items and artists), IBAT Battle Games (a P2E games platform), IBAT Battle Arena (a metaverse world with customizable avatars), and IBAT Battle Stake (a staking platform that allows users to earn rewards on their holdings).

BWCEvent aspires to share balanced and credible details on cryptocurrency, finance, trading, and stocks. Yet, we refrain from giving financial suggestions, urging users to engage in personal research and meticulous verification.

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Jeffrey Taylor is a retired mechanical engineer who has an interest in all things financial, including emerging markets and cryptocurrencies.