Coinbase Shares Soar On BlackRock Crypto-Partnership News
Coinbase shares are up almost 40% this morning following news that the major crypto-exchange will be partnering with the world’s largest asset-manager, BlackRock, to make it easier for institutional investors to manage and trade Bitcoin, marking a major push into cryptocurrencies for the world’s largest asset manager.
The focus of the partnership “will initially be on Bitcoin,” BlackRock said.
“Our institutional clients are increasingly interested in gaining exposure to digital-asset markets and are focused on how to efficiently manage the operational life cycle of these assets,” Joseph Chalom, BlackRock’s global head of strategic ecosystem partnerships, said in the statement.
As Bloomberg reports, institutional investors accounted for about three-quarters of the $309 billion in trading volume on Coinbase in the first quarter, the company disclosed in May. Coinbase clients include hedge funds, corporate treasuries and asset managers.
“The Coinbase partnership between BlackRock and Aladdin is an exciting milestone for our firm,” Brett Tejpaul, head of Coinbase Institutional, and Greg Tusar, vice president of institutional product, said in a separate statement.
“We are committed to pushing the industry forward and creating new access points as institutional crypto adoption continues to rapidly accelerate.”
This news sent COIN back to three-month highs after languishing near record lows for weeks…
Sadly, for some, COIN is up over 100% since Cathie Wood dumped her shares on July 27th.
For BlackRock, the partnership is the next step in a wider strategy to expand into digital assets. Chief Executive Officer Larry Fink said in March that the firm was studying the growing importance of digital assets and stablecoins and how they can be used to help clients.
Thu, 08/04/2022 – 09:42