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Coinbase Needs Crypto Investors to Buy, Not HODL

Coinbase Global isn’t hibernating during crypto winter, but even keeping moving might not be enough to avoid a deep freeze.

The cryptocurrency exchange’s stock jumped last week on the news of a partnership with BlackRock to connect to its Aladdin investment-management platform for institutions, starting with Bitcoin. But institutional volumes aren’t a cure-all for what ails the exchange right now. Coinbase has a rising share of volume coming from institutional versus retail—79% in the second quarter, versus 69% a year prior, the company reported on Tuesday. Yet retail volume still fetched a far higher fee rate in the second quarter, around 1.3% versus 0.02%.