Bitcoin tops $68,000 mark: What led to the rally?

Some of the world's largest institutional investors, including BlackRock and Fidelity Investments, now offer spot Bitcoin ETFs

Bitcoin on March 5 breached the $68,800-mark, and is nearing its all-time high as money keeps rushing into the largest cryptocurrency by market value.

Bitcoin's all time high was $68,990, which it recorded in November 2021.

The token has gained 59 percent this year and most of the rise has come in the last few weeks when inflows into the U.S.-listed bitcoin funds have surged.

Reasons behind the rally

- Spot ETFs: These ETFs allow investors to dabble in crypto in a less riskier way than before and, hence, has attracted a huge influx of cash this year, experts said.

"Investors are getting turned on to the fact that Bitcoin can be treated as an uncorrelated asset, which makes it extremely attractive for portfolio diversification," Joel Kruger, market strategist at digital currencies exchange LMAX Group, told news agency CBS MoneyWatch.

The U.S. Securities and Exchange Commission (SEC) had approved the sale of spot bitcoin ETFs last month. Since then, investors have deposited some $7.35 billion into the 11 different funds available, as per Bloomberg.

Some of the world's largest institutional investors, including BlackRock and Fidelity Investments, now offer spot bitcoin ETFs.

According to CoinGecko data, the market capitalisation of Bitcoin has surged to $1.35 trillion, surpassing the previous peak of $1.28 trillion recorded in November 2021.

Revival of crypto market?

Sidharth Sogani, CEO at CREBAGO Global, told Moneycontrol that not just crypto, all other commodities like gold, silver, and even copper have seen a jump in prices.

On Ether ETFs, Sogani said, "Ethereum ETFs may be announced before May 23." He also said that they are bullish on the entire market.

Net flows into the 10 largest U.S. spot Bitcoin funds reached $2.17 billion in the week to March 1, with more than half of that going into BlackRock's iShares Bitcoin Trust, according to LSEG data.