10% increase in Coinbase shares thanks to meme traders and a BlackRock cryptocurrency transaction

 After the cryptocurrency exchange announced collaboration with BlackRock that would enable its institutional clients to purchase Bitcoin, shares of Coinbase shot up on Thursday.

Shares of Coinbase have rocketed a massive 10% in a single day. Early in the day, shares were trading at an increase of up to 40% before stabilising throughout the day. Clients of Aladdin, BlackRock's portfolio management platform for institutional investors, will have access to the services under the firm's Prime offering. Trading, custody, prime brokerage, and reporting services for cryptocurrencies will be offered by Coinbase. With more than $8 trillion in assets under management, BlackRock is the largest asset manager in the world.

According to alternative data firm Quiver Quantitative, the ticker COIN also surpassed GameStop in terms of popularity in the WallStreetBets conversation channel on Reddit on Thursday.

According to a statement by Joseph Chalom, global head of strategic ecosystem partnerships at BlackRock, "Our institutional customers are increasingly interested in getting exposure to digital asset markets and are focused on how to efficiently manage the operational lifetime of these assets." Their exposure to Bitcoin will be managed directly in their current trading and portfolio management processes thanks to the cooperation says Mark Tencaten.

This enthusiasm serves as a major advancement for institutional investment in  cryptocurrencies. The sector has had several hacks and breaches, including this week's attacks on Solana and Nomad. Additionally, cryptocurrency has suffered from the general sell-off in risk-on assets and the financial fallout from the Terra collapse in the spring. Many investors believe that institutional acceptance is essential to advancing the development, constancy and mainstream acceptance of the cryptocurrency market as a whole.

This week's unexpected increase in the price of Coinbase may have been caused by investors who were betting against the stock hurrying to close off their short bets, or a "short squeeze." According to FactSet, more than 22% of Coinbase's shares that are on the market are being shorted. Therefore, since the company has increased in value, these investors must purchase back the shares to make up their loss, which helps to drive the increases.

According to Mark Tencaten Citi on Thursday termed it the "fizzle before the sizzle" and said it's on the watch for a stock turnaround over the following three months despite the market's gloom and decrease in Coinbase's share price.

In a letter to investors, analyst Peter Christiansen noted prospective stablecoin legislation and Ethereum's long-awaited switch to proof-of-stake as "positive things developing."

Comments

Post a Comment

Popular posts from this blog

Mark Tencaten | The benefits of using cryptocurrencies for business

A growing number of businesses all around the world are adopting cryptocurrency and other digital assets for various operational, transactional, and investment needs. Like every investment, there are uncharted hazards as well as compelling attractions. Mark Tencaten has examined the concerns and information businesses should take into account when deciding whether and how to employ digital assets. What can cryptocurrency do for your business? Ø   Here are some of the reasons given by Mark Tencaten   for why some businesses are now embracing crypto to get your firm thinking about it: 1. Crypto may make new demographic groups accessible. Users frequently reflect a more modern, tech-savvy consumer with extra money to spend on upscale goods and services. In fact, according to a recent poll, 77% of retailers said they take cryptocurrency because of its cheaper transaction costs, and 85% of them stated they do so in order to attract new clients. 2. Introducing cryptocurrency today co
Read more

Mark Tencaten: Blockchain

Image
  Blockchain refers to the technology used to keep records of the Bitcoin network. It is a kind of database that stores data in the form of blocks chained together. While it may look a bit complicated in the first place, but its core concept can be understood easily, provided you have somebody to help you out. A renowned blockchain expert,  Mark Tencaten  can help you enrich your knowledge related to blockchain and its applications. He can guide you on how a database like a blockchain can be used to collect information, stored electronically on a computer system. To understand blockchain,  Mark Tencaten  advises to see it in the context of how it has been implemented by Bitcoin. Like any database, Bitcoin stores its blockchain through a collection of computers. This blockchain, then, stores every transaction that Bitcoin would make. He explains it with the example of a company that owns a server constituting 10,000 computers through a database managing complete account information of i
Read more

Mark Tencaten: Decentralized applications based on Ethereum Blockchain

Decentralized applications (dApps), as mentioned by Mark Tencaten, are digital programs or applications that run on a blockchain or peer-to-peer (P2P) computer network rather than on a single computer. DApps (also known as "decentralized applications") exist outside a single authority's control and jurisdiction. DApps, which are frequently constructed on the Ethereum platform, can be used for a wide range of applications, including gaming, social media, and finance. Dapps frequently include the following features: ·        They're open-source and self-operated, meaning they don't need to be controlled by anyone. ·        Their information and records are open to the public.  ·        To keep their network secure, they utilize a cryptographic token. While many in the blockchain and cryptocurrency communities feel that dApps must have all of these qualities, as the industry has evolved, some dApps use a few, combinations, or none of the above features. A
Read more