Mark Jeftovic, the Bitcoin Capitalist, helps explain what is driving Bitcoin prices to surge in recent days.

Bitcoin Spot ETFs in the US confer legitimacy and “regulatory clarity” on Bitcoin as an asset class. Before this, many large pools of capital (e.g., pensions, endowments, etc.) were precluded from allocating to Bitcoin. Now that there is a regulated, clear path to Bitcoin ownership via ETFs, institutional funds are clear to allocate to it.

I’ve been saying the “1% allocation” rule will become a kind of mantra throughout the investing world. Anybody can take a 1% hit if it all goes to zero, but the asymmetric upside of Bitcoin is too compelling to not put at least 1% in. Even conservative ETFs (i.e. Fidelity’s Conservative fund) are calling a 1% allocation part of the mix.

READ MORE: Are we in a Bitcoin bubble?