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."

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