Bitcoin Spot ETF Approval Gives Boost to US Stocks, Coinbase Gains 5%

Following the approval of a Bitcoin spot exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC), U.S. stock market shares related to Bitcoin also show strength.

Coinbase, a major cryptocurrency exchange operator, is trading at $158.45, up 4.73% from the day’s closing price, after the U.S. stock market closed at 7:44 p.m. on the 10th. MicroStrategy, one of the largest Bitcoin holding companies, is trading at $582, up 2.89%.

In addition, Riot Platforms, a Bitcoin mining company, is also moving at $16.29, up 4.76%.

Earlier in the day, the SEC announced that it would approve 11 types of Bitcoin spot ETFs after the U.S. stock market closed. This is a major accomplishment for the cryptocurrency industry, 10 years after the first attempt to approve a Bitcoin ETF. As a result, investors can trade Bitcoin spot ETFs on the exchange like other ETFs starting from the 11th (local time).

As investors gain more access to Bitcoin, they eagerly anticipate an expansion in Bitcoin trading and a rise in its prices, expecting related stocks to reap benefits.

Not only that, but as Bitcoin mining is also expected to increase, related semiconductor companies are also likely to benefit. Nvidia, the leading graphics processor (GPU) company, is up more than 2% on the U.S. stock market today and continues to rise by about 0.3% in after-hours trading.

By. Seong Won Jang