BlackRock ETF Sparks Major Bitcoin Growth in Coinbase Wallets

Key Points:

• 500 BTC moved to Coinbase Custody wallet after BlackRock filed for a spot bitcoin ETF.
• Coinbase Custody will be the custodian for bitcoin held on BlackRock Bitcoin ETF.
• Trading volumes on Coinbase doubled in the past week as BTC prices rose 20%.

According to data from analytics tool CryptoQuant, the amount of bitcoin (BTC) held in one Coinbase Custody wallet increased by 2,500 BTC in the wake of BlackRock’s recent filing for a spot bitcoin ETF.

This wallet is a service offered by the crypto exchange that allows institutional investors to store large amounts of tokens, such as bitcoin, in a secure wallet. Should regulators approve BlackRock’s request, Coinbase Custody will serve as the custodian for the bitcoin held on BlackRock Bitcoin ETF.

The bitcoin sent to the custodial wallet was tracked by CryptoQuant and came from Coinbase (COIN). It is important to note that a custodial wallet is different from a cold or hot wallet that Coinbase uses to store customers’ holdings. This suggests that a large player probably bought the bitcoin on Coinbase and sent the holdings to the custodian wallet, as transaction data shows.

Interestingly, the wallet previously held over 5,000 bitcoin that were deposited between May 19 and May 20, according to the data. It is possible that this increase in the amount of bitcoin held in the wallet is due to a positive sentiment among bitcoin holders and investors following BlackRock’s ETF filing, as noted by CryptoQuant analyst Bradley Park in a Telegram message. Park stated that “The BlackRock effect has positively affected market sentiment and even institutions’ bitcoin buying.”

The recent surge in bitcoin prices, with a 20% increase, has also led to a significant increase in trading volumes on Coinbase. CoinCu data shows that over $2 billion worth of tokens were traded on the exchange in the past 24 hours, double the daily average of $1 billion since the start of June. This suggests that investors are taking advantage of the current market conditions and are actively trading bitcoin on the Coinbase exchange.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Annie

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