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October 22, 2019

Bitcoin rose to new record because of hopes for first ETF on crypto-currency

BitcoinThe digital currency Bitcoin rose to a record high above 1,200 USD, as investors speculated that soon the US may begin to act first exchange traded fund (ETF). There are three ETF-a, which track the course of Bitcoin, waiting for the green light by the US Securities Commission and exchange of currencies. By March 11, the regulator must decide whether to endorse one of them, which were filed documents nearly four years of investor Cameron and Tyler Winklevoss. If approved, it could be the first ETF, created and regulated by the US regulator.

The traditional financial players largely ignored web-based currency and believed it to be too volatile, complex and risky.

The established in 2008 Bitcoin, however, represented better than any currency each year from 2010 to date, with the exception of 2014, when it was the worst performer currency. Since the beginning of 2017, the Bitcoin rose by nearly 25%. During early Asian trading digital currency rose to 1,200 USD at European exchange Bitstamp exchange, and later restrict growth to 1,190 USD.

The total value of all Bitcoin in circulation, or market capitalization of the currency is close to 20 billion USD, as the economy of Iceland.

The regulatory approval for ETF on Bitcoin currency would make it relatively more attractive to institutional investors who are traditionally more cautious. But despite potentially higher returns, low correlation with other currencies and assets falling volatility and increased liquidity, there is little evidence that most major players are considering investing in digital currency.

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