After months of decline and stagnation, on Tuesday, Bitcoin rose 7 percent to a high of $8,342.62. The cryptocurrency is up 20 percent in the past week, largely due to rumors of interest from institutional investors and heavy speculation that a Bitcoin ETF will be approved by the SEC in August. This marks the first time Bitcoin has broken the $8,200 level for the first time in two months. Bitcoin last traded above that level on May 23rd.
Last week, BlackRock confirmed rumors that it had assembled a working group to look into cryptocurrencies and the underlying (blockchain) technology. Although BlackRock’s working group has existed since 2015, the news still managed to contribute to a recent spike in crypto markets.
BlackRock isn’t the only major financial institution investing major resources into the crypto world. According to a Fortune report published last week, billionaire hedge fund manager Steven Cohen, invested in the cryptocurrency-focused fund Autonomous Partners.
In addition, crypto investors are eyeing regulatory news. It seems inevitable that a bitcoin ETF will be approved by the SEC, possibly as soon as August. Outside of the United States, several other countries are working towards establishing regulation. Last week, South Korea set up a government department aimed at creating policy initiatives around financial technology and cryptocurrencies.
By all accounts, regulation is moving rapidly, as governments begin to understand the risks and opportunities associated with cryptocurrencies.
Editor’s Note: Details for this article were sourced from CNBC