On Thursday, Bitcoin maintained gains above $50,000 putting the digital currency on track following steep losses witnessed last week. The largest cryptocurrency is returning to the bullish momentum it has witnessed in recent weeks as mainstream interest continues to grow.
Bitcoin on the path to recovery after last week’s losses
BTC rose as much as 1.7% in Asia trading rising to $50,976, according to Bloomberg data. The digital currency had surged almost 11% on Wednesday during US trading. Last week BTC prices were very volatile, with the coin plunging almost 21% before recovering with the wider global equities bounce back. The GTI Global Strength Indicator, which on a technical basis detects trend changes, has started an upward trajectory indicating a bullish move for the coin.
Antoni Trenchev, Nexo founder and managing partner, stated that stimulus return is good news, especially for scarce assets such as BTC. Fascinatingly, big-name investors have been backing the coin, with mainstream interest continuing to grow in Canada following the launch of Bitcoin ETFs. So far, ETFs have helped drive $5.2 billion in inflows last month, which is the second-highest monthly inflows on record.
Ninepoint Partners to turn crypto trust to BTC ETF
For instance, Toronto-based asset manager Ninepoint Partners LP is planning to turn its crypto trust into this format. The firm will ask holders of the $226 million Bitcoin Trust (BIT.C) to support the conversion of the trust to an ETF from a closed-end investment fund. The company, which manages around $9 billion in assets, cited better price to its net asset value and increased liquidity as the inspiration behind the change.
Most importantly, premiums and discounts to net asset value are something common for cryptocurrency trusts because unlike ETFs, it is not easy to create new shares. The holders’ meeting will take place on April 19 to approve the conversion, and the firm will cover conversion costs.
Huobi to launch Grayscale-like crypto funds in Asia
With the Asian crypto market maturing, Huobi, which is the largest cryptocurrency trading platform in Asia, has cited an opportunity here. The exchange plans to launch crypto funds similar to Grayscale, albeit for Asian markets. Chinese journalists Wu Blockchain stated that Huobi had received a Hong Kong crypto fund license to launch Ethereum, Bitcoin, and multi-strategy funds. The funds similar to Grayscale will see the exchange promote traditional investors into the digital currency field.
Kentucky introduces tax breaks for bitcoin miners
In Kentucky, legislators have passed a new bill giving sales tax breaks to crypto mining companies. The Kentucky lower house applied House Bill 23, which offers crypto miners tax benefits. Interestingly, this approval means that miners will be exempt from the 6% sales tax on energy consumption in the state. The legislation makes it attractive for miners to set shop in Kentucky because power bills are usually the largest expense from large-scale crypto miners.