Bitcoin’s price gains pull along other virtual currencies
Bitcoin's recent price surge has pulled along other cryptocurrencies with it, according to figures from CryptoCompare, reported MarketWatch. Ark Invest, an investment management firm with virtual currency holdings, and Ethereum, a virtual currency, have been among the winners.
Chris Burniske, a blockchain analyst and product lead at Ark Invest, said that these gains are beginning to filter into the broader market as bitcoin traders look to reinvest their profits. Two of Ark Invest’s exchange traded funds have exposure to bitcoin by holding shares in Grayscale’s Bitcoin Investment Trust.
Over the past month, bitcoin’s market capitalization has increased by about $4 billion. If investors reinvested gains in other digital currencies, the market for bitcoin’s rivals would double in size, Burniske said.
Ethereum, the second-largest virtual currency by market capitalization, has nearly doubled in the past month, rising from about $6 per ether token to $10.50 on Wednesday, according to data from Coin Market Cap.