Bitcoin News: Coinbase Custody Boosts Crypto Insurance Coverage Amid Growing Institutional Asset Holdings

Coinbase Custody has made a significant move to enhance the security of its clients` digital assets by upgrading its insurance protection. The custody service, which safeguards a substantial amount of institutional assets, now offers the largest commercial crime policy covering hot wallets in the crypto sector.

Coinbase Custody Enhances Crypto Insurance Coverage

Coinbase Custody has significantly enhanced its insurance protection, now offering what experts claim is the largest commercial crime policy covering hot wallets in the crypto sector. This comes as the custody service safeguards $101 billion in institutional assets, with a total of $193 billion in digital holdings. The bolstered policy covers theft of fiat currency and digital assets from Prime Trading and Vault services, amid accelerating institutional crypto adoption. For instance, eight of the 11 US-based spot Bitcoin ETF providers have selected Coinbase as their custodian.

GameStop CEO Acknowledges Proposal to Convert $5M Cash to Bitcoin

GameStop CEO Ryan Cohen has received a proposal from Strive Asset Management to convert $5 million in cash reserves into Bitcoin. Strive Asset Management, in a letter signed by its CEO Matt Cole, suggested that this move would turn the video game retailer into the `premier Bitcoin treasury company in the gaming sector.` Strive argues that this shift would enhance GameStop’s financial position and align the retailer with the growing adoption of Bitcoin. The investment firm believes holding Bitcoin instead of cash would protect against inflation and position GameStop as a forward-thinking player in the financial and gaming sectors.

Bitcoin Tumbles: Are the Bears Taking Over?

Bitcoin hovers above $89,000 as bearish pressure mounts, driven by rising short positions and negative cumulative volume delta on Binance futures. Support levels are critical, with $85,000 shaky and the risk of a drop to $77,000 if buyers don’t emerge. Iván Bolé highlights the fragility of potential support zones, amid low trading volumes and a volatile market influenced by external political factors. An intense bearish marubozu candle reflects increased selling pressure, with Bitcoin priced below key moving averages of 50 and 100 days. Critical support could collapse at $89,200 and $81,661, but overcoming the resistance of $99,520 is crucial for optimism. The Crypto Fear & Greed Index indicates ‘Extreme Fear,’ potentially signaling forthcoming volatility.

Strategy Stock Falls 11% as Bitcoin Slips Below $90K

Strategy stock plunged 11% on Feb. 25 as Bitcoin slipped below $90,000, raising concerns about a possible liquidation due to the company’s massive Bitcoin exposure. With 499,096 Bitcoin (BTC) valued at around $44 billion, Strategy is the largest corporate Bitcoin holder, making its financial stability closely tied to the asset’s price movements. The sharp drop has fueled speculation of a possible forced liquidation. However, capital market analysts The Kobeissi Letter noted that these concerns are exaggerated. Strategy currently holds $8.2 billion in debt against its ~$44 billion in Bitcoin, maintaining a leverage ratio of around 19%.

ARK Invest Bought Coinbase Dip as Bitcoin Fell to Multi-month Lows

Asset manager ARK Invest has picked up shares of cryptocurrency exchange Coinbase as tech stocks dipped and Bitcoin fell to multi-month lows. According to the company’s latest update, it picked up 41,032 shares of Coinbase Global Inc. (COIN) valued at $9.3 million. The newest purchase comes a little over two months after the Cathie Woods-led firm offloaded $4.3 million worth of COIN stocks in late December. The buying activity transpired with the ARK Next Generation Internet exchange-traded fund, an actively managed ETF product that seeks long-term capital growth by investing primarily in domestic and foreign equity securities of companies relevant to the fund’s investment theme of next-generation Internet.