Bitcoin has advanced for the first time in several months after losing momentum due to previous scandals that plagued the value of the cryptocurrency at the start of the year. Analysts believe the recent uptick in value for the currency could be a consequence of recent reports indicating the Securities and Exchange Commission (SEC) may approve a Bitcoin exchange traded fund (ETF), allowing a broader range of investors into the digital currency market.
Bitcoin finally climbed back over $8,000, its second-biggest monthly gain of 2018. It was only back in May that the digital currency traded at its highest level of $8200.
Investors are mostly optimistic about the cryptocurrency, indicating that these recent gains could be a sign of a long term return to the record highs bitcoin experienced in late 2017. Others see the optimism as a result of promising accounts that the first bitcoin based ETF could materialize.
Back in June, asset manager Van Eck Associates Corp. and startup SolidX Management LLC applied to the SEC to start a regulated bitcoin ETF. Earlier this week, Bitwise Asset Management Inc., a San Francisco asset manager focused on cryptocurrencies, also filed with the SEC to an establish an ETF that would track an index of the top 10 cryptocurrencies, including Bitcoin and Ethereum.
Bitcoin specializing in its own electronically-traded fund would allow more investors into the digital currency market and certainly increase Bitcoin's value significantly.
On those recent accounts alone, several Bitcoin analysts are already boosting the value of cryptocurrencies across the board; there has been a parallel increase in rival digital currencies like Ether and Ripple. This has driven the market capitalization for the market as a whole back over $290 billion, according to research site Coinmarketcap.com, and getting investors excited again.
On previous accounts, the SEC has been opposed to approving any such requests. In the past, regulators were skeptical that such products could comply with rules meant to protect individual investors, and in January, top regulators denied the attempts of any ETFs approval of holding bitcoin and other cryptocurrencies, alleging the price is far too volatile.
More recently, Van Eck and SolidX, both based in New York, have said their proposal was designed to address the SEC's main concerns, where there hopeful that this time around will be different.
More recently, investors are staying bearish on the digital currency and any announcements on imminent ETF's are reasons for optimism investors claim. Although it's a far reach from the surge experienced by Bitcoin in 2017, when it soared from under $1,000 to nearly $20,000, a manic run that attracted mainstream interest all over the world- its enough to keep investors interested in, and hopeful for the long term viability of Bitcoins value.
