Bitcoin is hovering near a six-month high due to ETF hopes.

The US Securities and Exchange Commission is expected to approve the first American bitcoin futures ETF this week.

Bitcoin was trading around a six-month high early Monday, buoyed by hopes that US regulators will soon allow cryptocurrency exchange-traded funds (ETFs) to trade, but global inflation concerns also provided some support.

Bitcoin was recently trading at $62,359, close to the six-month high of $62,944 set on Friday and not far from its all-time high of $64,895 set in April.

According to Bloomberg News, the US Securities and Exchange Commission (SEC) is scheduled to authorize the first American bitcoin futures ETF to begin trading this week, paving the way for increased investment in digital assets.

Bitcoin has more than doubled since the beginning of the year, but the journey has been bumpy as the market grapples with themes ranging from increased institutional acceptance and asset-class maturity to a crypto crackdown in China and concerns about energy usage.

"It won't be surprising to see some profit taking come through around those levels as traders would look to sell the news," said Pankaj Balani, chief executive officer of crypto-derivatives exchange Delta Exchange, in a note on Friday. "Regardless of how the outcome plays out, overall volatility on Bitcoin will be significant."

Cryptocurrency participants anticipate that the approval of the first US bitcoin ETF would result in an influx of funds from institutional investors who are currently unable to invest in digital coins.

Increasing inflation fears fueled demand for bitcoin, which is in short supply compared to the plethora of currencies created by central banks in recent years as monetary authorities printed money to support their economies.