The logo of Coinbase Global Inc, the largest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron and others at Times Square in New York, U.S., April 14, 2021.
Shannon Stapleton | Reuters
The sharing of Coinbase surged 40% on Thursday after the crypto exchange announced a partnership with BlackRock to give customers access to cryptocurrency trading, starting with bitcoin.
The Coinbase Prime service will be available to customers of BlackRock’s portfolio management platform for institutional investors, Aladdin. It will provide crypto trading, custody, primary brokerage and reporting capabilities. Black stones is the largest asset manager in the world with over $8 trillion under management.
Coinbase shares have recently fallen, and analysts aren’t sure why. Shares were up 20% on Wednesday. Shares are still down nearly 70% in 2022 through Wednesday’s close.
Coinbase’s unusual jump this week may be related to investors betting against scrambling for shares to cover their short positions, known as a short hold. According to FactSet, more than 22% of Coinbase shares available for trading are shorted. So, once the stock has run, these investors have to buy back the stock to cover the loss, further driving profits.