The largest US-based cryptocurrency exchange, Coinbase, rallied on Thursday after inking a deal with investment management corporation, BlackRock Inc. The bull run on Coinbase saw shares skyrocket by nearly 44% in a single day as investors gave a thumbs up. BlackRock Deal. Under the agreement, BlackRock’s top clients will be able to use its Aladdin investment-management system to monitor their risk with bitcoin as well as other portfolio assets including bonds and stocks.
on Nasdaq at around 1.32 p.m. ET, coinbase It was trading at $92.9896 with an increase of 15.07%. However, the shares have touched an intraday high of $116.30.
The stock was around $80.81 on Nasdaq the previous day.
Taking into account the latest day’s high, Coinbase shares are up 43.92% since Wednesday.
According to BlackRock, the company’s top customers will be able to use its Aladdin investment-management system to monitor their risk Bitcoin Along with other portfolio assets such as stocks and bonds, and to facilitate financing and trading on the Coinbase exchange, as reported by Bloomberg.
It said that the partnership will initially focus on Bitcoin which is the largest cryptocurrency by market valuation.
Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, said his institutional clients are interested in exposure to digital-asset markets. Furthermore, they are focusing on how to efficiently manage the operational life cycle of these assets.
Oppenheimer & Company analyst Owen Lau has a buy rating on Coinbase shares.
In a phone interview with Bloomberg, Lau said regulatory risks from the partnership are manageable because it is starting with bitcoin, which has a clearer regulatory status than other digital assets in Washington.
Furthermore, Lau said that the tie-up is a validation of the future of blockchain and digital assets and also a validation of Coinbase’s reputation. Lau noted that the deal is “a huge plus for the industry and for Coinbase as well.”
Data reported by Coinbase in May showed institutional investors contributed nearly three-quarters of the $309 billion in trading volume on its platform.
On CoinMarketCap, bitcoin is currently trading with a decline of 3.82% at $22,609.52. The market valuation of the cryptocurrency is around $431.85 billion.
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