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Coinbase Global (NASDAQ:COIN), MicroStrategy (NASDAQ:MSTR) and Silvergate Capital (NYSE:SI) were among the cryptocurrency-related stocks rallying in Friday afternoon trading as crypto-market investors brushed off earlier instances of financial contagion from the collapse of FTX (FTT-USD).
Genesis Global Holdco, the holding company of struggling crypto lender Genesis Global Capital, filed for bankruptcy protection, though investors didn’t appear bothered, with bitcoin (BTC-USD) rising 1.4% to $21.39K at 2:48 p.m. ET, and ethereum (ETH-USD) up 2.6% to $1.59K.
Still, there are industry-wide implications associated with the demise of Genesis, namely the potential for further slowing of crypto adoption and trust from institutions, said Jack Tan, co-founder of crypto trading platform WOO Network.
“Strong businesses are poised to gain market share and expand into the next bull market while the weaker, poorly managed, or ones with too much risk-taking are dying off,” Tan added. And despite last year’s downfall of FTX and the bankruptcies that soon followed, “BTC (BTC-USD) remained above $15,000 and continues to show positive momentum.”
On Tuesday, Seeking Alpha contributor Nikolai Galozi viewed bitcoin (BTC-USD) as a Strong Buy, calling it “the safest crypto asset.”
Looking at the individual crypto-exposed stocks, Coinbase (COIN) jumped 8.4% as JPMorgan reiterated the stock as Neutral, citing increased crypto trading volume market share so far in January.
“We see Coinbase as a beneficiary of the challenges that have faced other brokers/exchanges in the aftermath of the collapse and bankruptcy of FTX,” the firm wrote in a note.
As for other crypto stocks, Silvergate (SI) led the gainers, climbing 13%, followed by Cipher Mining (NASDAQ:CIFR) +8.7%, Hut 8 Mining (NASDAQ:HUT) +8.6% and MicroStrategy (MSTR) +4.4%. The only intraday losers included BIT Mining (NYSE:BTCM) -6.6% and Bakkt Holdings (NYSE:BKKT) -3%.
The broad gains across crypto stocks and the actual tokens come as all three major U.S. stock market indices pushed higher.
Elsewhere in the cryptoverse, FTX token (FTT-USD) jumped on Thursday after the new FTX chief said the crypto exchange could reboot operations.
Image and article originally from seekingalpha.com. Read the original article here.