Coinbase (COIN) shares are trading for $95.55 following the announcement of its partnership deal with Blackrock. That’s up 18% from Wednesday’s $80.81 close – adding to a mysterious momentum boost the stock has experienced since Wednesday.
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CryptoPotato reported on Thursday that BlackRock – the world’s largest asset manager – tapped Coinbase to help provide crypto trading and custody to its institutional clients. Its service will begin with a focus on Bitcoin.
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Joseph Chalom – Head of Strategic Ecosystem Partnerships at BlackRock – stated that interest in crypto exposure has been increasing among Blackrock’s client base. The firm currently holds over $8 trillion in assets under management.
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Coinbase’s stock opened on Wednesday at $106 at 09:30 EST, just hours after the reveal. It peaked at $115 shortly after, before trickling into the mid-ninety dollar range.
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This follows a 20% jump for COIN on Wednesday, rising from the lower sixty dollar range it held at the start of the week. As told by CNBC, the earlier rise may be attributed to a short squeeze – a price pump caused by large numbers of short traders being liquidated.
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If true, recent news would give such traders a right to be bearish. The crypto bear market has seen the stock plummet from its all-time highs, alongside multiple other crypto-focused firms.
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Coinbase was also recently slapped with an SEC investigation for allegedly listing unregistered securities. Its stock plummeted 21% in response, after which Cathie Wood’s ARK Invest dumped the stock at an all-time low of $53.
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On top of that, Coinbase’s former employee was struck with the very first cryptocurrency insider trading charges last month. The suspect, Ishan Wahi, has since pleaded not guilty.