The stock of Coinbase (COIN), a crypto exchange, rose by almost 10% on Tuesday after it was named as a “surveillance partners” in several spot bitcoin ETFs. Rising options trading volumes and an increase in open interest suggest that the bullish sentiment could continue to be reflected with the stock over the next few months.

BlackRock had already announced the firm as a partner in its proposed bitcoin ETF, which explains why prices have risen over the last month. This agreement was not included in previous public spot Bitcoin ETF filings and requires a crypto exchange share trading data to authorities.

Market observers have said that Coinbase’s stock could rise in the medium-term due to its connections with traditional financial players. However, they are cautious about short-term movements.

Alex Kuptsikevich, senior market analyst at FxPro, said in a CoinDesk note that Coinbase’s history with Bitcoin spot ETFs is attracting investor interest. This was an expected development but there were risks so the relief soon turned into a squeeze.

Kuptsikevich referred to a $12,000,000 COIN sold by Cathie Wood’s ARK Invest, on Tuesday: “We cannot rule out the effect of reports from Ark Innovation Fund, which announced that the sale of Coinbase… The range exit provides further momentum, with potential targets of a quick rally up to $113 as well as longer-term targets near $160. Coinbase missed out on an important portion of the cryptocurrency markets’ upside.

Key Metrics

Open interest (the number of unassigned futures contracts) grew by 4% as the stock closed the day at $89,15. The gains for the year to date are now 74%. This includes major cryptocurrencies like bitcoin (BTC), ether (ETH), and others.

Open interest that is increasing is an indication of more money being invested in a market, whether it is tokens, stocks or other assets. It usually means the current trend will continue.

data show that COIN options’ open interest rose 14.6% on Tuesday to 953,393 contract, a much higher level than the 52-week-average of 812 568 contracts. The put-call ratio also decreased from 6.1% to 1.2 over the past five days, indicating a bullish outlook among traders for COIN.

Calls are bets that increase the price of an asset, while puts are bets made against it. A falling put-call is considered a positive indicator, as it indicates that more calls than puts are being purchased.

Sheldon Reback is the editor.