In recent developments, Bitcoin has displayed a significant surge, with its price escalating by 7.87 percent to reach $34,020. This marks its highest value since May 2022. The surge, primarily attributed to the anticipation of an imminent exchange-traded bitcoin fund (ETF), saw Bitcoin briefly surpassing the $35,000 mark during Asian trading hours. Ethereum (Ether), the second-largest cryptocurrency, also experienced a 4.50 percent increase, reaching $1,786.30, its highest value since August.

The driving force behind this positive sentiment in the cryptocurrency market is the potential approval of a bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). A spot bitcoin ETF would provide a means for cautious investors to enter the cryptocurrency market through the stock exchange, potentially attracting fresh capital into the sector.

This optimism has rippled through the broader cryptocurrency market, with related stocks experiencing positive gains. Notably, major U.S. exchange Coinbase Global recorded a gain of over 7 percent, while bitcoin owner MicroStrategy saw a remarkable surge of over 12 percent.

The market’s enthusiasm is palpable, with many eagerly awaiting concrete developments from the SEC. Antoni Trenchev, co-founder of digital asset firm Nexo, emphasized the significance of potential SEC actions.

Intriguingly, several prominent U.S. financial firms, including investment giant BlackRock, have pending applications for bitcoin ETFs. The anticipation of their approval was further fueled by the listing of iShares ETF on the website of the clearing house DTCC, though the exact timing and reasons for this listing remain unclear.

Additionally, reports suggest that the SEC will not contest a court ruling that deemed the agency’s rejection of an ETF application from crypto firm Grayscale Investments to be in error. This court ruling, formalized on Monday, has sent the application back to the SEC for review, increasing the likelihood of ETF approval.

Over the past 24 hours, data from the crypto derivatives analysis site Coinglass has indicated significant short-covering activity in the bitcoin market, reflecting the growing optimism and positive sentiment surrounding the cryptocurrency.

In summary, Bitcoin’s surge to an 18-month high is intrinsically tied to the growing speculation surrounding an SEC-approved bitcoin ETF, promising an exciting development in the world of cryptocurrencies.

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