Bitcoin has reached a new record due to the inflow of money into cryptocurrency.

(CNN) — Bitcoin reached its all-time high this Monday, snapping more than two years of bearishness that has raised questions about the future of the entire cryptocurrency ecosystem.

Bitcoin, the world’s first and largest digital currency, was trading at US$68,791, surpassing the previous record of US$68,789 set on November 10, 2021.

In recent months, Bitcoin’s rally has been boosted by US regulators’ approval of exchange-traded funds linked to the digital asset, paving the way for more traditional investors to get Bitcoin into their wallets.

This approval required years of lobbying by cryptocurrency companies, and was reluctantly granted by the Securities and Exchange Commission after a court ruled that the regulator’s reasons for rejecting Bitcoin ETF applications were “arbitrary and arbitrary.” Were” in manner.

The first 11 “spot” Bitcoin ETFs – which track the real-time market price of the asset – launched in January.

Within a month, the ETF had generated more than $4.2 billion in net new inflows, according to Bloomberg.

ETFs are investment tools that track a basket of assets but trade like stocks. Part of the appeal of Bitcoin ETFs is that investors can get exposure to Bitcoin through their regular brokerage firm rather than creating a digital wallet through a cryptocurrency exchange.

Bitcoin is a benchmark for the cryptocurrency sector, whose reputation has been hit by a series of negative events that have made headlines: high-profile bankruptcies of exchanges and lenders, volatile price fluctuations and the death of former cryptocurrency celebrity Sam Bankman-Fried. trial. Which was convicted in November of stealing billions of dollars from customers of its FTX exchange, which collapsed in late 2022.

Bitcoin, which represents more than half of all cryptocurrencies in circulation, has surged more than 200% over the past 12 months, according to CoinMarketCap.

Bitcoin’s rally has also been fueled by crypto loyalists, who expect even greater gains this spring after an event called the “halving.” Approximately every four years, the number of Bitcoins in circulation halves, a characteristic inherent in cryptocurrencies that are limited by design. As Bitcoin becomes scarcer, its price is expected to increase.