Bitcoin has experienced a run on the cryptocurrency as investors scramble to buy and sell shares in its surging value.
The move has triggered a run-up in the value of the digital currency, with the price of a single bitcoin rising more than $1,000 since last week.
Bitcoin has been gaining momentum since a surge in trading in early March and is now trading at more than two times its value as of early Thursday, according to data from CoinDesk, which tracks Bitcoin prices.
As the currency continues to surge, investors have been searching for new ways to make money off it, from trading the virtual currency on Wall Street, to buying shares and holding them on exchanges.
The value of a bitcoin has risen from less than $US1,200 ($2,868) in April to more than US$1,700 in the past two weeks.
While there are still concerns about the currency’s long-term sustainability, bitcoin investors have had a run of good luck this year, with a number of exchanges allowing trading.
One exchange, Gemini, recently reported that the bitcoin market capitalisation had increased by more than 50% to US$4.5 billion as of October 31.
Some exchanges have begun to re-examine the trading strategies they used to trade bitcoins, as some have begun issuing more warnings about trading in bitcoin after the currency spiked.
For investors, there are plenty of reasons to be optimistic about bitcoin, according a new report from investment bank J.P. Morgan.
“The digital currency has become the most-used digital asset in the world and the fastest-growing stock market of any asset class, with annualised returns exceeding 5,000%, according to Morningstar,” it said.
Investors are taking advantage of the rapid price appreciation, with bitcoin stocks soaring by as much as 20% since January, according the report.
This chart shows how Bitcoin stock markets have grown since January 2016.
With the bitcoin surge in March and the beginning of the cryptocurrency’s run on Wall St., investors have made a lot of money out of the bitcoin craze, according TOBIAS ZEISNER, CEO of brokerage firm Topps.
A chart from Topps shows how bitcoin stocks have risen since January.
The chart also shows that bitcoin has a lot more potential for investors than the stock market.
To put it another way, bitcoin stock markets could be worth a lot to investors, according Topps analyst Zane Szeisner.
Zane said: “The value of bitcoin is going up faster than the market, and investors are taking it seriously.
Investors can buy bitcoins and hold them on exchange and it’s becoming increasingly profitable.”
Bitcoin’s rise is also fuelling fears about the potential for a bubble.
It is a phenomenon that is not unique to the cryptocurrency world, as many other asset classes have experienced similar swings.
Many investors have also taken advantage of an uptrend in oil prices, which is down around 2% per month.
Gold, which rose over $US2,000 in the week ending December 31, has seen a similar trend, with its price soaring by more or less US$500 per coin since the start of the year.
Gold has also risen to $US4,600 an ounce.