by Amanda Cooper and Tom Westbrook

LONDON/SINGAPORE (Reuters) – Bitcoin hit its highest level in two years on Monday, surpassing the $65,000 mark to approach its record, supported by the influx of capital into new ETFs backed by the most famous cryptocurrencies.

Bitcoin reached a high of $65,537 at the start of the session in Europe, after having already reached a two-year high in Asian trading, and was up 3.78%, at $64,969 around 11:30 GMT.

Bitcoin reached an all-time high of $68,999.99 in November 2021.

The most popular cryptocurrency by market value has gained 50% this year and most of the rise has come in recent weeks, driven by a surge in inflows into US-listed bitcoin funds.

Exchange-traded funds (ETFs) based on bitcoin were validated in January by the Securities and Exchange Commission, the American stock market watchdog, rekindling enthusiasm around the cryptocurrency.

Net flows to the 10 largest U.S. spot bitcoin funds reached $2.17 billion in the week to March 1, with more than half going to BlackRock’s iShares Bitcoin Trust, according to LSEG data .

Ether, bitcoin’s smaller rival, has benefited from speculation that it too could soon become the subject of ETFs and has risen 50% since the start of the year. It traded on Monday at its highest level in two years, up 1.93% to $3,495.83.

This jump is accompanied by higher highs on stock market indices as well as a drop in volatility indicators on stocks and currencies.

“In a world where the Nasdaq is reaching records, cryptocurrencies will do well because bitcoin remains a technological indicator with high volatility and a thermometer of liquidity,” said Brent Donnelly, president of the analysis company SpectraMarkets.

“We’re back to a 2021-type market, where everything’s up and everyone’s having fun.”

( Diana Mandiá, edited by Blandine Hénault)

Copyright © 2024 Thomson Reuters