Cryptos bounce back on news of JPMorgan’s active Bitcoin fund

Bitcoin & Ethereum jump 6% in Monday trading.

Cryptocurrencies bounced back on Monday after suffering two major corrections in the previous week.

Having fallen by $200bn in the plunge partly triggered by a potential tax hike in the United States, the capitalisation of the total cryptocurrency market regained the $2trn benchmark, rising by more than 6%.

Having sunk to $47,110, its lowest point since late February, Bitcoin surged by over 12%. Although a recovery was widely expected for the world’s leading cryptocurrency, its size and speed can be attributed to JPMorgan Chase.

Bold move

The prominent US investment bank announced at the start of the week its intention to offer an actively managed Bitcoin fund to certain clients.

Although JPMorgan has long since abandoned the dismissive attitude to Bitcoin it took in 2017, the decision to launch an active rather than passive fund only underlines the extent to which its view has shifted.

The move follows the bank’s March announcement of a ‘Cryptocurrency Exposure Basket’, a note linked to the performance of Bitcoin affiliated stocks such as Square, MicroStrategy and Riot Blockchain.

By mid-afternoon, Bitcoin traded up 8.7% at $53,728, while Ethereum stood 9.6% higher at $2,500. XRP enjoyed a particularly strong day, jumping 15.8% to $1.25.

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