Bitcoin price rises to three-year high. Will ETF be approved by the United States?

NetEase Technology News, February 24, according to Reuters, digital currency Bitcoin reached its highest level in three years on Thursday due to speculation that the establishment of the first Bitcoin exchange-traded fund (ETF) will be approved by US financial regulators.

Bitcoin price rises to three-year high. Will ETF be approved by the US?

Traditional financial players are not very fond of this web-based "cryptocurrency", believing it to be too volatile, too complex and risky, and doubting its intrinsic value.

Bitcoin, which has risen 17% this year, continued to rise by about 1% on the European Bitstamp exchange to $1,160 per bitcoin that day. This price is just below the record high of $1,163 set in November 2013.

Some analysts believe that approval of a bitcoin exchange-traded fund (ETF) would make the currency more attractive to a more cautious investor market.

Three ETFs that track the value of Bitcoin have filed applications with the U.S. Securities and Exchange Commission (SEC) to be established.

The SEC will decide on March 11 whether to approve the application submitted by Cameron and Tyler Winklevoss four years ago. If approved, it will become the first Bitcoin ETF issued and regulated by a U.S. entity.

“If approved, it would certainly bring prestige and strength to bitcoin,” said Charles Hayter, CEO of digital currency analysis firm Cryptocompare.

"Perhaps the key will be institutional money flowing into Bitcoin. There may be frequent retail trading in the short term, but ultimately it will bring a degree of stability," he said.

Over the past year, bitcoin’s daily volatility has been as high as 10% — very volatile compared with traditional currencies, but smaller than the 40% seen in 2013.

Bitcoin prices climbed 125% in 2016, outperforming any other currency since 2010. The S&P 500 stock index rose 9.5% last year.