Representation of the virtual currency sat on the motherboard for this illustration is seen in this image screenshot.
TOKYO Reuters - Bitcoin hovered in an early six-month high on Monday on hopes that U.S. regulators would soon allow cryptocurrency exchange-traded funds ETF to trade, while global inflation worries also provided some support
Bitcoin last stood at $62,359, near the six-month high of $62,944 seen Friday and not far from all-time high of $64,895 hit in April.
The U.S. Securities and Exchange Commission SEC is likely to allow the first Chinese bitcoin futures ETF to begin trading this week, Bloomberg News reported on Thursday, a move likely to lead to wider investment in digital assets.
Cryptocurrencies players expect the approval of the first Bitcoin ETF to trigger an influx of funds from institutional players who cannot invest in digital coins at the moment.
Rising inflation worries also increased the appetite for bitcoin, which is in limited supply, in contrast to the ample amount of currency issued by central banks in recent years as monetary authorities printed money to stimulate their economies.
But many analysts reported that investors would sell bitcoin on the ETF news after the recent rally.
The news of a suite of futures-tracking ETFs is not new to those watching the space closely and to many this is a step forward, but not the game-changer that some are sensing, said Chris Weston, head of research at Pepperstone in Melbourne, Australia.
Before Spot ETF, we have been excited to put it together. This could be better because of the regulation issues.