The cryptocurrency market has experienced a rollercoaster ride in recent years, with major players like Bitcoin regularly experiencing price swings of thousands of dollars in days. Despite the volatility, companies are still looking to enter the space, with recent announcements from Coinbase and BlackRock making headlines.

Coinbase, one of the largest cryptocurrency exchanges in the world, has announced that it will be offering yields on Circle’s USDC stablecoin for its global customers. Eligible customers may be able to earn a reward of 4%, but the rewards rate is subject to change and can vary. The move comes as US financial regulators are looking to crack down on such services, considering assets like stablecoins as securities.

Meanwhile, BlackRock’s iShares unit has filed for the creation of a spot Bitcoin ETF named the iShares Bitcoin Trust. The ETF will consist primarily of Bitcoin held by Coinbase as custodian and is benchmarked against the CME CF Bitcoin Reference Rate. This is the latest attempt by a fund management company to open a spot Bitcoin ETF, and it comes during a regulatory crackdown in the cryptocurrency industry.

The market sentiment has received a slight boost since the filing, with Bitcoin rising to just shy of $25,600. However, the cryptocurrency industry is still facing challenges, with FTX co-founder Sam Bankman-Fried facing two separate trials for alleged mismanagement of the crypto exchange. Five of the charges have been split off into a second trial scheduled for March 2024, while the first trial focuses on charges of bribery conspiracy, conspiracy to operate an unlicensed money-transmitting business, bank fraud conspiracy, derivatives and securities fraud.

The cryptocurrency market remains volatile, with investors needing to be wary of sudden price fluctuations. However, the recent moves by Coinbase and BlackRock demonstrate that both companies believe that the crypto industry still has potential. As regulations change, it will be interesting to see how the industry evolves and whether more companies will look to enter the space.