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Cryptocurrency market value tops $2 trillion for the first time as ethereum hits record high

 

China — The value of the cryptocurrency market topped $2 trillion for the first time on Monday driven by a rally in ether, the second-largest digital coin.

 

Bitcoin, the biggest digital currency, accounts for over 50% of the entire cryptocurrency market capitalization. Bitcoin has rallied over 100% this year alone, and that has helped drive the cryptocurrency market higher.

 

Ether rally

But the latest boost in the cryptocurrency market appears to have been driven by ether, the digital coin that powers the Ethereum blockchain.

 

Ether hit an all-time high of $2,151.25 on Tuesday morning Singapore time, according to CoinDesk. It is up over 180% year-to-date.

 

The digital currency is also seeing interest among companies. Chinese app maker Meitu bought $22.1 million worth of ether last month, making it one of the first major companies to do so.

 

Bitcoin interest

Bitcoin still remains the powerhouse of the cryptocurrency market and over the last few months, saw a big increase in interest among companies and large institutional investors.

 

Tesla and Square are among a handful of companies that have purchased bitcoin.

 

Meanwhile, major investment banks are exploring ways to allow clients to get involved with digital asset investments. In March, CNBC reported that Morgan Stanley became the first major U.S. bank to offer its wealth management clients access to bitcoin funds. CNBC also reported last month that Goldman Sachs is gearing up to launch its first investment vehicles for bitcoin and other digital assets to clients of its private wealth management group.

 

There is also hope among investors for an expanding portfolio of investment products and many are watching Grayscale Investments, which runs one of the largest publicly traded bitcoin funds. It is known as the Grayscale Bitcoin Trust.

 

The company said on Monday that it is “100% committed” to converting that trust into an exchange-traded fund, or ETF. That would effectively track the price of bitcoin and allow traders to play the price movement without owning the cryptocurrency itself. It could be a way for more investors to be involved in the bitcoin market.

 

Reference: CNBC