The price of bitcoin surged to a two-month record above $8,000 on Tuesday, up more than a quarter from the end of last month, amid the positive market expectation on the potential approval of the world’s first bitcoin ETF by the U.S. securities watchdog.
It edged up above $6,000 a token at the end of June and surpassed $7,000 last week releasing a sign of warming up of the world’s largest cryptocurrency by market value.
Bitcoin was recently traded at $8,200, the highest level since May, according to the research web CoinDesk.
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Mutual fund manager Van Eck Associates Corp. and digital financial service startup SolidX Management LLC filed last month with the U.S. Securities and Exchange Commission (SEC) to apply for permission to launch a bitcoin ETF. San Francisco-based cryptocurrency index fund Bitwise Asset Management has also submitted an application to the SEC looking to launch an ETF that traces an index of 10 major digital currencies.
But analysts did not expect the approval of SEC to come this year. “The probability of getting permission to launch and trade bitcoins ETFs by this year is fairly low,” said Joseph Young, crypto financial analyst. “The Chicago Board Options Exchange (CBOE), with its highly rule-based nature, might be the first one to be accepted by the regulators.”
Hearings on virtual tokens by the U.S. Congress have been moved into a broader discussion. The results were revealed positive to fuel up the market confidence.
The SEC was reportedly to announce its decision whether to endorse on five bitcoin ETFs proposed by the investment firm Direxion by September 27, under a concern of regulation risks and values fluctuation.
Brain Kelly, crypto investment firm, said they have received a growing number of order calls from their institutional investors who had escaped from the market contraction and were regathering with more seriousness.
Internet data was proved to be valuable, even in the emerging Web 3.0 Era. With the newly technical expansion to be a so-called “data bank”, an enlarged database where the virtual tokens could transfer information, such cryptocurrencies might be able to be included in the asset-management portfolio, Kelly added.