Miners and Coinbase Rally in Wake of BTC Price Boost Fueled by Bitcoin ETF Anticipation
As the market closely watches developments surrounding the potential approval of a Bitcoin spot exchange-traded fund (ETF) for BlackRock by the U.S. Securities and Exchange Commission (SEC), shares of crypto-related companies are seeing major gains.
Coinbase, MicroStrategy, and Marathon Digital saw their stock prices rise by more than 15% following Bitcoin's price surge past the $34,000 mark.
As the crypto market reacted to the possibility of a Bitcoin spot ETF, Bitcoin's price experienced a remarkable ascent, topping at $35,000 at one point.
This optimism began when the proposed BlackRock ETF appeared on the website of the Depository Trust & Clearing Corp. (DTCC), an essential U.S. market utility.
According to CoinShares head of research James Butterfill, "Authorized participants will have to buy Bitcoin if a spot ETF gets approved in order to create shares for an eventual ETF, which will result in significant flows to buy an increasingly illiquid supply of Bitcoin."
The BTC price spike influenced the broader financial sector. Stock prices of Coinbase, MicroStrategy, and financial services firm Galaxy Digital all rose, with MicroStrategy's balance sheet already holding more than 158,000 Bitcoin.
Bitcoin mining companies, which are generally more susceptible to Bitcoin price fluctuations, are among the beneficiaries of this BTC price hike. Marathon Digital (MARA) and Riot Platforms (RIOT) saw their stock prices go up by over 15%. Even the S&P 500 and Nasdaq equity indexes snapped a five-day losing streak.
The expectations of a Bitcoin spot ETF approval have been brewing for some time, particularly after financial giants like BlackRock submitted their applications to the SEC.
"If Bitcoin's rally extends as far as $40,000,
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