It seems that the biggest names in traditional finance are confident that cryptocurrencies have a bright future.
Namely, BlackRock (NYSE: BLK) made a major push into the crypto space by partnering with the crypto exchange Coinbase (NASDAQ: COIN).
This cooperation will link BlackRock’s institutional clients who already own assets on Coinbase into the Aladdin asset manager suite of tools, which enables BlackRock’s clients to manage their portfolios and asses risks on investments via various approaches the software enables, the crypto exchange announced on August 4.
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Crypto democracy
Former BlackRock executive predicted that crypto will have a place in everyone’s portfolio, therefore this move comes as a logical continuation of that paradigm. Meanwhile, Jim Cramer joined Andrew Ross Sorkin to discuss this new move on CNBC and whether it adds more value to Coinbase.
“Yes, absolutely because some people feel that Coinbase is this rogue, that it’s actually an exchange, it’s not a company. But with discovering that it looks like the Senate wants this to be regulated by the CFTC, which is much more pro-Coinbase, it makes then sense that Larry Fink would want to deal with them.”
Cramer also added:
“It is kind of amazing, whether Coinbase is doing the right thing or not because they have 200 different coins that they list. And a lot of the coins are very suspect, even Robinhood wouldn’t take a lot of them. But, institutions want crypto, and the place to go is Coinbase.”
COIN chart and analysis
At the time of writing, COIN is up by 22.10% following the news of the partnership. After multiple bottoms have been noted on the daily chart, the change of momentum now seems superfluous to mention.
The short-term trend is now very positive for the stock, and further gains should turn the long-term trend positive as well.
Meanwhile, the previous resistance zone of $101.57 was broken and the new resistance line is at $125.22, while support is now at $81.84.
Meanwhile, both BlackRock and Coinbase will continue to work on this cooperation to improve the platform and integration with Aladdin, which should roll out functionalities in phases. Access to the platform will be given to institutions contracted with both parties.
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