Shares of Bullish (BLSH) rose 5% to $53.12 on Tuesday after the crypto platform secured a BitLicense from the New York State Department of Financial Services, a crucial regulatory approval that opens the door to offering spot trading and custody services to institutional clients in New York.

With the license, Bullish’s U.S. arm — Bullish US Operations LLC — can now legally serve advanced traders in the financial capital of the U.S., an important step in the company’s push to expand domestically. Until now, Bullish was only regulated in Germany, Hong Kong and Gibraltar. Bullish’s global parent is also CoinDesk’s parent company.

The license comes just a day after Cathie Wood’s ARK Invest significantly increased its exposure to the company. The ARK Innovation ETF (ARKK) acquired 120,609 shares while ARK Next Generation Internet ETF (ARKW) picked up 40,574 shares, together worth about $8.21 million.

Bullish, which runs a trading platform aimed at institutional investors, will report second-quarter earnings after markets close on Wednesday.

Earlier this week, investment bank Keefe, Bruyette & Woods (KBW) initiated coverage on the company with a «market perform» rating and a $55 price target. The firm called Bullish “a rare public play” on a crypto exchange built for institutions and noted that its entry into the U.S. could drive growth. KBW sees domestic expansion as a key catalyst.

Bullish debuted on the New York Stock Exchange in August through a direct listing. Its stock surged to $104 on opening day before closing at $68. Since then, shares have fallen 22%, with today’s BitLicense announcement providing a boost.

If Bullish succeeds in expanding its footprint in the U.S., it could emerge as a legitimate competitor to Coinbase, according to brokerage firm Bernstein. The firm said success will depend on the platform’s ability to execute on its U.S. launch plans, currently targeted for 2026, Bernstein said.