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MicroStrategy,
and
Marathon Digital
stocks climbed Tuesday as crypto-related stocks benefited from a new year
Bitcoin
rally.
Bitcoin rose above $45,000 in early trading, up more than 5% over the past 24 hours, amid hopes the Securities and Exchange Commission will shortly begin approving Bitcoin exchange-traded funds. It’s the first time the world’s largest cryptocurrency has topped $45,000 since April 2022.
The positive sentiment quickly spread, not only to other crypto assets such as
Ethereum
and
Dogecoin,
but also to equities exposed to digital assets.
Shares in
MicroStrategy,
a software company with vast holdings of Bitcoin, jumped 12% in early trading, but crypto broker
Coinbase Global
fell more than 5%.
Marathon Digital,
a Bitcoin miner, rose 3%.
Anticipation over the potential approval of Bitcoin ETFs has been building. The SEC may even notify potential issuers as soon as Tuesday or Wednesday that they have been cleared to launch ETFs from next week, Reuters reported, citing sources familiar with the matter.
MicroStrategy,
Coinbase,
and Marathon Digital can all be seen as bets on Bitcoin. The ETF approvals, which are now seen as very likely, look set to support the cryptocurrency in the long term, ensuring billions more is poured into crypto funds.
But some, including ARK Invest’s Cathie Wood, believe the approval will be a “sell the news” event, putting the price of Bitcoin under pressure. If that’s the case then the crypto-related stocks may also give back some of the early year gains.
Write to Callum Keown at [email protected]
Read the full article here
