Bitcoin soared nearly 10 per cent on Monday, after five straight days of losses, on reports that JPMorgan Chase is planning to offer a managed bitcoin fund.
The cryptocurrency had slumped almost a fifth from its all-time high hit earlier this month.
It was last up 9.5 per cent at US$53,792.0 after touching its lowest since early March on Sunday. Other major coins ethereum and XRP, which tend to move in tandem with bitcoin, were up around 7.7 per cent and 20.4 per cent respectively.
JPMorgan is preparing to let certain clients invest in an actively managed bitcoin fund for the first time, CoinDesk reported on Monday.
Cryptocurrencies fell sharply on Friday on concern that U.S. President Joe Biden’s plan to raise capital gains taxes would curb investments in digital assets, though they later recovered some losses.
Bitcoin has lost over 19 per cent from its April 14 record of almost US$65,000. Still, the cryptocurrency has risen over 80 per cent this year, fueled by growing adoption from mainstream investors and companies such as Tesla Inc.
(Reporting by Tom Wilson in London and Stephen Culp in New York; Editing by Thyagaraju Adinarayan and Andrew Cawthorne)