Bitcoin Rallies to 2-Year High of $49,000

Bitcoin climbed in frantic trading Thursday after the Securities and Exchange Commission (SEC) conditionally approved the first-ever spot Bitcoin ETFs to trade in the U.S., as expected.

The cryptocurrency was last up 1% at $46,289.15. Earlier, it pushed above $49,000, reaching levels not seen since December 2021. Meanwhile, the price of Ether jumped 5% to May 2022 highs. It last traded at $2,594.60.

The ETF approval is a game changing victory for the crypto industry, which first looked to launch a Bitcoin ETF over a decade ago. 

Expectations had been building since Grayscale’s important legal win against the SEC in August over the regulator’s refusal to let it convert its popular Bitcoin Trust (GBTC) into an ETF. The flagship cryptocurrency’s value has rocketed 80% since then.

After the SEC’s decision, Bitcoin initially edged lower, as expected by many traders. Although the volume of inflows into the new funds is still unclear, Bitcoin ETFs are still anticipated to push the demand – and ultimately, price – of Bitcoin higher.

Ether has been in Bitcoin’s shadow for much the last year and has struggled to find any momentum, underperforming against blockchain networks like Solana and Cardano. Ether lagged Bitcoin in 2023, rising just 90% compared to Bitcoin’s 157%.

Now, the SEC is due to give decisions on spot ETH ETF applications beginning in May. BlackRock, Invesco, Ark and VanEck are among the firms in line for approval, as well as Grayscale, which is seeking to convert its existing Ethereum Trust (ETHE) into an ETF.