The wallet contained over 5,000 bitcoins that were deposited between May 19 and 20, according to the data.
The amount of bitcoin (BTC) held in a Coinbase Custody wallet increased by 2,500 BTC shortly after BlackRock filed for a spot bitcoin ETF last week, according to data from the analytics tool CryptoQuant.
The Coinbase Custody service enables institutional investors to store large quantities of tokens, such as bitcoin, in a secure container. If the request is approved by regulators, it will act as the custodian for bitcoin held by BlackRock Bitcoin ETF.
A CryptoQuant-monitored wallet indicates that the bitcoin sent to the custodial wallet originated from Coinbase (COIN). A custodial wallet is distinct from a cold or hot wallet that Coinbase uses to store customers’ holdings, so transaction data suggests that a significant participant likely purchased the bitcoin on Coinbase and sent the holdings to the custodial wallet.
The wallet contained over 5,000 bitcoins that were deposited between May 19 and May 20, according to the available data.
Bradley Park, a CryptoQuant analyst, stated in a Telegram message that BlackRock’s ETF registration may have stimulated optimism among bitcoin holders and investors, which could explain the transaction.
“The BlackRock effect has had a positive impact on market sentiment and even institutional Bitcoin purchases,” said Park.
In the past week, Coinbase’s trading volume nearly doubled as bitcoin prices rose 20%. In the past 24 hours, more than $2 billion worth of tokens were transferred on the exchange, which is double the daily average of $1 billion since the beginning of June.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.