Coinbase custody wallet saw a 2.5K increase in Bitcoin holdings following BlackRock’s ETF filing.

The amount of bitcoin (BTC) held in a single Coinbase Custody wallet increased by 2,500 BTC shortly after BlackRock submitted an application for a bitcoin ETF, according to data from the CryptoQuant analytics tool.

Coinbase Custody is a service provided by the cryptocurrency exchange that enables institutional investors to securely store large amounts of tokens, such as bitcoin, in a wallet. If regulators approve the request, Coinbase Custody will act as the custodian for the bitcoin held on the BlackRock Bitcoin ETF.

A wallet tracked by CryptoQuant reveals that the bitcoin sent to the custodial wallet originated from Coinbase (COIN). Since a custodial wallet is distinct from the cold or hot wallets that Coinbase uses to store customers’ holdings, it is likely that a large player purchased the bitcoin on Coinbase and transferred the holdings to the custodian wallet, as transaction data indicates.

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The data demonstrates that the wallet previously contained over 5,000 bitcoin that were deposited between May 19 and May 20.

CryptoQuant analyst Bradley Park stated in a Telegram message that BlackRock’s ETF filing may have boosted positive sentiment among bitcoin holders and investors, which may account for the transaction.

“The BlackRock effect has had a positive impact on market sentiment and even institutional bitcoin purchases,” Park said.

Since bitcoin prices increased by 20%, trading volumes on Coinbase have nearly doubled in the past week. According to CoinGecko data, over $2 billion worth of tokens were traded on the exchange in the last 24 hours, double the daily average of $1 billion since the beginning of June.

Trading pairs for bitcoin against the US dollar and tether (USDT) accounted for $900 million of these volumes, indicating a demand among traders as the asset surpassed the $30,000 mark on Thursday.

Edited by Sheldon Reback.