Coinbase Stocks Rebound, BlackRock Plans Bitcoin ETF Acquisition, Fed Chair Squashes CBDC Concerns
Summary:
Coinbase stocks have surpassed their initial public offering (IPO) price for the first time in two years, fueled by the recovering crypto market. Meanwhile, BlackRock, a well-known asset manager, plans to acquire Bitcoin exchange-traded funds for its global allocation fund. Federal Reserve Chair Jerome Powell has also dismissed fears over an impending central bank digital currency, emphasizing there are no plans for a system that monitors user transactions.
Coinbase stocks have seen an impressive surge above 60% in 2024, marking their first time trading back over their debut price since the initial public offering two years ago. Alongside, Bitcoin is seeking to acquire spot Bitcoin (BTC) exchange-traded funds for its worldwide allocation fund. Federal Reserve Chair, Jerome Powell has also quelled apprehensions over an impending controlling central bank digital currency.
After mounting a recovery in the crypto market, Coinbase (COIN) shares have risen back above their $250 debut price for the first time since the past two years, the closing price on March 8 was just around $255, surpassing their debut price. The track record of COIN shares has seen some turbulence since its launch two years ago with the lowest trade at $33 in 2023 during the crypto bear market. The current momentum is backed by the escalating prices of Bitcoin and crypto, mainly sparked by the green light for spot BTC exchange-traded funds in the US.
Following a robust fourth quarter of the fiscal year, Coinbase reported a net income of $263 million out of a net revenue of $905 million. BlackRock, one of the world's leading asset managers, plans to obtain spot BTC exchange-traded funds (ETFs) for its Global Allocation Fund (MALOX). The recent filing suggests that the fund might purchase BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), as well as ETFs from other issuers. These investments will be made only in Bitcoin ETPs listed and traded on national securities exchanges, as per the Securities and Exchange Commission (SEC) filing.
The BlackRock Global Allocation Fund was launched in 1989 with an aim to offer returns through a diversified investment strategy involving U.S. and international equities, debt securities, and money market securities. As of March 7, MALOX managed assets worth $17.8 billion.
Federal Reserve Chair, Jerome Powell, calmed concerns over a CBDC in the US, stating that the country is far from having any form of CBDC and even if it did, no such currency will ever be implemented that involves surveillance of users. He further clarified that if the Federal Reserve ever rolled out a CBDC, the approach would be through the banking system, rather than creating individual accounts for Americans.
The article should not be considered as trading advice or suggestion; investments and trading moves involve risk and readers should do their due diligence before making any decisions.
Additional reporting was done by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
3/8/2024 11:15:19 PM
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