Bitcoin and cryptocurrency stocks rallied on Thursday following a report that U.S. regulators could approve spot bitcoin exchange-traded funds (ETFs) as early as Friday.
The price of Bitcoin jumped over 3% to $44,163 after falling to $42,952 on Wednesday. This is the first time Bitcoin has topped $45,000 since April 2022. At the end of 2023, bitcoin was trading around $43,000 – its highest level in 20 months after rebounding 158% from September lows.
Cryptocurrency exchange Coinbase (COIN) rose 2.2%, and bitcoin mining company Marathon Digital (MARA) surged 12.1% during Thursday’s trading session on the news. Crypto stocks had broadly declined on Wednesday.
The gains came after Fox Business reported late Wednesday that unnamed sources said the Securities and Exchange Commission (SEC) could approve spot bitcoin ETF products on Friday. The approvals would allow the ETFs to begin trading next week.
Spot bitcoin ETFs could make it easier for institutional investors to gain exposure to cryptocurrencies and offer crypto investments to their customers. Currently, the only bitcoin ETF approved in the U.S. is the ProShares Bitcoin Strategy ETF (BITO), which invests in bitcoin futures contracts rather than directly in bitcoin.
Along with Coinbase and Marathon Digital, other crypto stocks rallying on Thursday included Grayscale Bitcoin Trust (GBTC), up 4.6%; Riot Platforms (RIOT), gaining 5.5%; Robinhood Markets (HOOD), edging up 1.6%; and MicroStrategy (MSTR) rising 3.9%.
