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Volatility And Diversification in the Crypto World

By Celine Leroudier

On August 4, Owen Lau, a Columbia Introduction to Finance lecturer and Oppenheimer senior analyst, joined CNBC’s Closing Bell to discuss crypto volatility and Coinbase’s partnership with BlackRock. Through this partnership, BlackRock, the world’s largest asset manager, would simplify the management and trade of Bitcoin for investors. In the current crypto winter, cryptocurrencies have suffered a loss of $2 trillion in value from their peak in 2021. 

“Bitcoin and Coinbase are only ten to twelve years old or so, but when these industries mature, I do believe the volatility will decrease,” said Lau.  

Lau added that Coinbase’s partnership with BlackRock would aid with diversification and help boost investor sentiment for Coinbase. This partnership will “provide institutional clients of Aladdin, BlackRock’s end-to-end investment management platform, with direct access to crypto” such as Bitcoin, through Coinbase Prime.

“When Coinbase starts to diversify,” Lau said, “I think the volatility [of cryptocurrency] won’t be that high.”

Watch the CNBC interview here

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