Coinbase’s BlackRock Pact Cements Crypto Status, Hits Shorts (1)

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 gained 10% on Thursday, after earlier surging as much as 44%, following its announcement that it was partnering with BlackRock Inc. to help institutional investors manage and trade Bitcoin. The rally was its third straight day of gains and set it up for a record weekly jump.

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 ...