Bitcoin is rising on hopes of investment fund approval

Bitcoin bulls have avoided a sweeping legal crackdown on some of the cryptocurrency industry’s biggest players, high interest rates and concerns of a global recession, sending the digital currency’s value near a 20-month high this week .

The digital coin was trading around $41,700 on Tuesday morning, after crossing $42,000 the day before. It has gained about 150 percent this year, far outperforming the Nasdaq composite index, as investors bet regulators will soon approve the first exchange-traded fund designed to track Bitcoin’s price.

Investment management specialists are flocking. Thirteen companiesincluding BlackRock, Fidelity and Switzerland-based Pando Asset, have filed paperwork with the Securities and Exchange Commission to create such an ETF

An ETF is essentially a bundle of assets broken down into shares that investors can buy and sell on stock exchanges. Unlike existing Bitcoin ETFs, which are tied to futures contracts, a so-called spot fund would give investors the opportunity to own the token themselves, without the hassle of requirements like a crypto wallet. Regulatory approval for such a product would usher in the industry’s long-held dream of a mainstream investment product.

The SEC has remained mum on when such approval might come, despite the flood of fund filings. Still, investors have increased their bets on Bitcoin in recent weeks amid speculation that the agency will make its profits decision in January.

It’s worth remembering that crypto trading is exceptionally volatile, given the relatively small digital currency market. The breathless prospect of a spot ETF has created the conditions for one rally based on FOMO – that is, the fear of missing out – according to crypto investment service provider Matrixport.