Bitcoin surges 90% this year as investors return to crypto markets

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Bitcoin surges 90% this year as investors return to crypto markets

The value of bitcoin has surged almost 90% this year, as investors return to the largest cryptocurrency by market cap, after a tumultuous 13 months for crypto markets that resulted in multiple bankruptcies and exchange failures.

Although Bitcoin's price is currently at its all-time high of about $68,000, its value has broken $31,000 for the first time since April when it briefly hit $31,005. Before that, the cryptocurrency hadn't traded above $30,000 since June 2022, before the tumult that eventually led to the collapse of FTX in November.

Bitcoin has seen a surge in interest as asset management giant BlackRock filed an application for a spot bitcoin exchange-traded fund last week. BlackRock's filing said that its iShares Bitcoin Trust would issue no new shares without them being backed 1:1 with BTC.

Other traditional financial institutions like Invesco and Wisdomtree followed suit by refining previously rejected applications.

Investors are hopeful that SEC approval of these new ETFs could result in a surge in trading volumes for digital assets. So far, the regulator has blocked spot bitcoin ETF applications.

In a surprise move, the SEC approved a 2X leveraged bitcoin fund. The risk of a 2X leveraged ETF would be considered more risky than a spot ETF. Volatility Shares' 2X Bitcoin Strategy ETF will trade under the BITX ticker beginning June 27.

This year, the cryptocurrency sector has overcome a tough regulatory environment and collapse of the FTX exchange. Cameron Winklevoss, founder of the troubled Gemini and Genesis crypto firms, said the 'window' to buy bitcoin before the ETF 'floodgates' open is 'closing fast'.