Bitcoin surged to a two-year high, surpassing $65,000 and approaching its record levels as a wave of money propelled it higher. The cryptocurrency hit a session high of $65,537 in early European trading and was last up 4% at $65,045. Bitcoin’s recent rally to a two-year high has been fueled by increased inflows into U.S.-listed bitcoin funds, following the approval of spot bitcoin exchange-traded funds in the United States earlier this year. The launch of these ETFs has attracted new large investors and reignited enthusiasm, reminiscent of the run-up to record levels in 2021.

Bitcoin has gained 50% this year, with a significant portion of the rise occurring in the last few weeks. Net flows into the 10 largest U.S. spot bitcoin funds reached $2.17 billion in the week ending March 1, with more than half going into BlackRock’s iShares Bitcoin Trust.

Ether, a smaller cryptocurrency, has also seen gains, rising 50% year-to-date and trading at two-year highs. Speculation about the potential approval of exchange-traded funds for ether has contributed to the positive sentiment.

The cryptocurrency market’s recent rally has coincided with records being set in stock indexes such as Japan’s Nikkei, the S&P 500, and the tech-heavy Nasdaq. With volatility gauges in equities and foreign exchange decreasing, some traders see a market reminiscent of the high-volatility period in 2021, where various assets experienced significant gains.