- Bitcoin price has hit new record highs above $69,000, prompting analysts to upgrade Coinbase stock and BlackRock to add Bitcoin exposure.
- Coinbase stock upgraded to neutral by Goldman Sachs, which boosted revenue estimates by 48% amid the crypto rally and surge in trading volumes.
- BlackRock’s $1.78 trillion Global Allocation Fund will invest in Bitcoin futures and trusts, marking a major step in mainstreaming crypto.
Cryptocurrency prices have rallied to record levels in recent days, led by Bitcoin’s surge past $69,000. The dramatic price increases have prompted analysts to upgrade their views on related stocks.
Coinbase Stock Upgraded Amid Crypto Rallies
Goldman Sachs upgraded Coinbase stock to neutral from sell on Thursday, citing the recent rally in crypto prices. Cryptocurrencies like Bitcoin have jumped to all-time highs, boosting trading volumes on Coinbase’s platform. The surge in activity led Goldman to increase its Coinbase revenue estimates by 48% since early February. The bank now sees less downside risk for the stock, although it still has concerns about long-term adoption and trading volumes. Goldman lifted its price target to $282.
BlackRock Fund Adding Bitcoin Exposure
Investment giant BlackRock plans to add Bitcoin exposure to its $1.78 trillion Global Allocation Fund. On Thursday, BlackRock filed with the SEC saying the fund may invest in Bitcoin ETFs, futures, and trusts. Allocations will be made to Bitcoin investment products trading on major exchanges. BlackRock noted the nascent Bitcoin futures market poses some liquidity risks. This will mark a major step in mainstreaming crypto investments.
Bitcoin Price Action
Bitcoin traded around $68,400 on Friday, moving back toward Tuesday’s record high of $69,208. The cryptocurrency has surged over 60% year-to-date, with most gains coming after the launch of spot Bitcoin ETFs in January. Other major cryptocurrencies like Ethereum also hit multi-month highs this week.
Bitcoin ETF Flows
The newly launched spot Bitcoin ETFs saw huge trading volumes during Bitcoin’s volatile price swings this week. As a group, they took in $10 billion worth of inflows on Tuesday. The ETFs remain popular with investors, with assets flowing mainly into BlackRock’s and Fidelity’s funds. Grayscale’s Bitcoin Trust has seen outflows, partly due to liquidations from bankrupt crypto firms.
Crypto Stocks Also Rising
Stocks of crypto-related companies have also rallied in recent days. Coinbase stock is up nearly 40% in 2024, while shares of Bitcoin miners Marathon Digital and CleanSpark have posted solid gains for the year despite this week’s turbulence. The crypto sector maintains its momentum as Bitcoin heads toward its next “halving” event which will reduce supply.
