Coinbase’s BlackRock pact reinforces crypto status, burns shorts

The crypto winter that has dogged Coinbase Global Inc. for nearly nine months might finally be showing signs of thawing.

Shares of the largest US cryptocurrency exchange surged as much as 44% on Thursday, the most intraday since its 2021 direct listing, after announcing a partnership with BlackRock Inc. to help institutional investors manage and trade Bitcoin. The rally puts the stock on track for a third straight day of gains and sets it up for a record weekly rally.

For Coinbase investors, the news is a much-needed signal that its status as a giant in the crypto sector remains rock solid. To be sure, shares are still deeply in the red this year, down more than 60%.