Investing.com – The bitcoin hit a new record high on Friday on the back of speculation that the Securities & Exchange Commission (SEC) could approve a U.S.-issued ETF on the digital currency, perhaps increasing its attractiveness for institutional investors.
According to the CoinDesk Bitcoin Price Index, which averages prices from the major exchanges, prices of the crypto-currency reached an intraday high of $1,206.60. That pushed the bitcoin past the prior all-time record of $1,165.89 set in November 2013.
It was last up only 0.33% at $1,182.25 by 4:18AM ET (9:18GMT).
On the New York-based itBit exchange, bitcoin inched up by 0.03% to $1,187.82, pulling back from an intraday high of $1,215.93.
Other big exchanges such as Bitfinex, Kraken and BitStamp showed mixed trade in the cryptocurrency.
The digital currency reached record highs on speculation that pointed to the fact that the SEC would approve at least one of the three proposed bitcoin-focused exchange-traded funds by an upcoming deadline.
The SEC will decide by March 11 whether to approve one filed almost four years ago by Cameron and Tyler Winklevoss. If approved, it would be the first bitcoin ETF issued and regulated by a U.S. entity.
Hopes are that the SEC regulation would not only backstop confidence in the digital currency, encouraging institutional investors to place money in the asset, but that those institutions would provide a bit of stability to trades.
According to Reuters, over the past year, bitcoin's biggest daily moves have been about 10% in a mark of extreme volatility when compared to other currencies.
Prices of the virtual currency are up more than 17% so far this year.
Bitcoin is digital cash and is not backed by a government or central bank to regulate or issue it. It can be used to purchase goods and services from stores and online retailers.