LONDON- Bitcoin rose above $50,000 on Tuesday for the first time, adding steam to a rally fuelled by signs that the world’s biggest cryptocurrency is gaining acceptance among mainstream investors and companies.
Bitcoin hit a record $50,603 and was last up 0.83 percent at $48,351. It has risen around 67 percent so far this year, with most of the gains coming after electric carmaker Tesla said it had bought $1.5 billion in bitcoin.
The move by Tesla, which also said it would accept bitcoin as payment, was the latest in a string of large investments that have vaulted bitcoin from the fringes of finance to company balance sheets and Wall Street, with US firms and traditional money managers starting to buy the coin.
“The rally in bitcoin in part reflects the recent buoyancy of market confidence but also headlines suggesting an increase in corporate acceptability,” said Jane Foley, head of FX Strategy at Rabobank.
Evolve Funds Group said on Tuesday it had applied to launch a Bitcoin exchange-traded fund on the Toronto Stock Exchange. That would be the second planned bitcoin ETF after Canada’s main securities regulator approved a fund by Purpose Investments Inc. – Reuters