Bitcoin jumped as much as 15 per cent after Tesla made the disclosure in a regulatory filing, with prices exceeding US$44,000 for the first time. Tesla also said it would begin accepting the digital token as a form of payment for its electric cars.

That Tesla, one of the world’s most influential companies, and billionaire Elon Musk have thrown their weight behind Bitcoin is a massive sign of support for the cryptocurrency, which has been criticized by policymakers for facilitating money laundering and fraud.

“The world’s richest man allocating US$1.5 billion of his company’s treasury to Bitcoin speaks volumes about the magnitude at which crypto gains institutional adoption,” said Antoni Trenchev, managing partner and co-founder of Nexo in London. “Tesla has now paved the way.”

Trenchev said he expects that at least 10 per cent of S&P 500 companies will be invested in Bitcoin by the end of 2022.