Coinbase shares soar 18% on BlackRock collaboration news

by in Cryptocurrency News

Coinbase

The investment appeal of the crypto company Coinbase has increased dramatically after it became known about its partnership with the giant BlackRock.

The world's largest asset manager will use the services of exchange to store digital currencies owned by institutions. First of all, cooperation will focus on operations with bitcoin.

Coinbase shares soared 18% to $95.55 after the news of the BlackRock partnership. Last Wednesday, the company's securities traded at $80.81.

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BlackRock spokesman Joseph Chalom said that the interest of his company's customers in Coinbase has increased dramatically. Moreover, the top management does not rule out further growth in investments in projects launched by the crypto exchange by BlackRock clients.

Recall that this giant manages assets totaling more than $8 trillion. Last Thursday, after the first reports of a partnership with BlackRock, Coinbase shares reached $115, but by the end of trading in the US, the price corrected below $100. As the CNBC channel clarifies, the rebound was the result of not only the news background but also the liquidation of short-term traders' positions.

Recently, the Securities and Exchange Commission (SEC) launched an investigation into Coinbase. The regulator was suspicious of the mechanism for listing tokens, which it considers unregistered securities. After that, the capitalization of the crypto company fell by 21%.