Digital currency bitcoin hits three-year peak

Digital currency bitcoin hit a three-year-peak yesterday and came to within $3 on speculation that the first bitcoin exchange-traded fund (ETF) would receive approval from the US financial regulator.

The ''cryptocurrency'' had failed to appeal to established financial players, spooked by its volatility. It was much too complicated and risky for their liking, Also, its value remained in doubt.

The currency's value was already up about 17 per cent this year, as it added 3 per cent more on the day to hit $1,160 per bitcoin on Europe's Bitstamp exchange, just less than an all-time high of $1,163 it hit in November 2013.

According to some analysts regulatory approval of a bitcoin ETF would make the virtual currency relatively attractive to the often more cautious institutional investor market.

Three ETFs that tracked the value of bitcoin had been filed with the US Securities and Exchange Commission for approval.

The SEC would decide by 11 March whether to approve one filed almost four years ago by the Winklevoss twins, Cameron and Tyler. If it was granted approval, it would be the first bitcoin ETF issued and regulated by a US entity.

"If approved, this would certainly give a dramatic condoning of bitcoin by the authorities and powers that be," digital currency analytics firm Cryptocompare CEO, Charles Hayter, said, Reuters reported.

Bitcoin had seen much volatility in recent weeks, plunging as low as $789 on 11 January, with increased scrutiny of the country's bitcoin exchanges as residents there tried to avoid capital controls.

China accounted for the bulk of bitcoin trading, with the currency ruling at over $1,000 for its longest-ever stretch, according to researcher CoinDesk.

The latest rally was likely not connected to China, rather it related to global political uncertainly created by statements and policies of president Trump, Mark Bunger, an analyst at Lux Research, said in an interview, The Straits Times reported.