Crypto analytics tool CryptoQuant has revealed that a Coinbase Custody wallet saw a jump of 2,500 BTC soon after BlackRock filed for a spot Bitcoin ETF last week. Coinbase Custody 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. It is expected to serve as the custodian for Bitcoin held on BlackRock Bitcoin ETF, if the request is approved by regulators.
Transaction data shows that the Bitcoin sent to the custodial wallet came from Coinbase (COIN). A custodial wallet is different from a cold or hot wallet that Coinbase uses to store customers’ holdings, suggesting a large player probably bought the Bitcoin on Coinbase and sent the holdings to the custodian wallet.
CryptoQuant analyst Bradley Park commented that the filing of BlackRock’s ETF may have spurred positive sentiment among Bitcoin holders and investors, which could explain the transaction. “The BlackRock effect has positively affected market sentiment and even institutions’ Bitcoin buying,” Park said.
CoinGecko data shows that trading volumes on Coinbase have nearly doubled in the past week as Bitcoin prices rose 20%. 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. Bitcoin trading pairs against the U.S. dollar and tether (USDT) accounted for $900 million of these volumes, indicating demand among traders as the asset broke the $30,000 mark on Thursday.