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Bitcoin ETFs approved as BlackRock mulls BTC and Nvidia reveals Ethereum mining GPU

2021.02.20 Adam James

News of the Week — The cryptocurrency world's biggest stories of the week

As ever, it's been an eventful week in the blockchain and cryptocurrency industry. The Ontario Securities Commission has approved two Bitcoin exchange-traded funds — which bodes well for the prospects of a Bitcoin ETF coming to the United States in 2021 — while the world's largest asset manager, BlackRock, considers BTC. Meanwhile, Nvidia aims to solve GPU supply issues by revealing a dedicated chip for Ethereum miners.

Here's everything you need to know about these stories, and more, in this week's edition of OKEx Insights' News of the Week.

Nvidia reveals dedicated Ethereum mining chip

Nvidia has revealed a new processor chip dedicated to cryptocurrency mining on the Ethereum network. The multinational technology company famous for its gaming GPUs is calling the new chip the Cryptocurrency Mining Processor, or CMP.

Key takeaways

  • Nvidia's creation of a dedicated Cryptocurrency Mining Processor is meant to segregate gamers and cryptocurrency miners, who have previously competed over the same hardware — historically making top-shelf GPUs difficult to find.
  • The company's premier gaming GPUs will also be rendered less useful and profitable by the creation of the CMP.
Nvidia's stock price has climbed following a crash that coincided with the last cryptocurrency bear market. Source: Microsoft Bing

India to levy cryptocurrency taxes before blanket ban

The government of India is ready to levy taxes on cryptocurrency trading and related capital gains, according to a report from Business Standard that cites an anonymous senior finance ministry official. 

The government insider claimed that the country's goods and services tax, or GST, and income tax, or I-T, would come into play for the current financial year — which encompasses the period between April 2020 and March 2021.

Key takeaway

  • The news follows last week's report that India is prepared to impose a blanket ban on cryptocurrency trading and usage. Thus, the enforcement of cryptocurrency taxation seems to be an effort to collect taxes on existing traders' investment liquidations.

BlackRock "starting to dabble" in BTC

BlackRock is reportedly eyeing BTC as investors look for alternative stores of value, according to the asset management behemoth's chief investment officer. Rick Rieder told CNBC's "Squawk Box" on Wednesday that the world's largest asset manager "is starting to dabble" in the foremost cryptocurrency.

Key takeaways

  • BlackRock's interest in BTC is indicative of a growing interest in the leading cryptocurrency among institutional investors and high-net-worth individuals.
  • It also shows that the regulatory environment for Bitcoin has evolved to the point that the world's largest investors are now comfortable allocating parts of their portfolios into BTC.

MicroStrategy plans to buy $690 million more BTC

MicroStrategy plans to raise an additional $690 million by way of senior convertible notes to buy more BTC. The unsecured notes would be issued only to qualified institutional buyers.

Key takeaway

  • MicroStrategy remains the most bullish company on the planet when it comes to Bitcoin. The business intelligence firm already owns 71,079 BTC after a series of buys and is currently sitting comfortably in profit in the investment.
MicroStrategy's stock has increased substantially since it started investing in BTC. Source: Microsoft Bing

Ontario approves second Bitcoin ETF

A Bitcoin exchange-traded fund has been approved by the Ontario Securities Commission — the second such ETF to be approved in North America in less than a week. The Evolve Bitcoin ETF is now set to list on the Toronto Stock Exchange.

Key takeaways

  • North America now has two approved Bitcoin ETFs. The first to be approved is the Purpose Bitcoin ETF, which will also trade on TSX.
  • Ontario's approval of two Bitcoin ETFs bodes well for the prospects of a much-anticipated exchange-traded fund for the foremost cryptocurrency in the United States.

OKEx Insights presents market analyses, in-depth features and curated news from crypto professionals.

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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