Crypto-linked Stocks Rally As Bitcoin Tests Key Resistance
Bitcoin's (BTC) price is hovering around $31,000 as bulls attempt to facilitate a break of a major near-term resistance, which would pave the way for a trip toward $35,000.
The price action is supported by recent news that Cboe's BZX Exchange had refiled its applications for several spot bitcoin exchange-traded funds (ETFs). As a result, crypto-linked stocks rose on Monday.
Crypto miners Riot Platforms (RIOT:US) and Marathon Digital (MARA:US) saw their shares rise nearly 13% and 10.5% on Monday, respectively, while crypto exchange Coinbase Global (COIN:US) added around 11.7%. Similarly, MicroStrategy (MSTR:US) rose up more than 10%.
Cboe is one of the financial players, alongside Fidelity, ARK Invest, and BlackRock (BLK:US), that has been trying to convince the U.S. Securities and Exchange Commission (SEC) to approve the spot Bitcoin ETF. The regulator has rejected numerous attempts to register a spot Bitcoin ETF, saying these applications did not meet its standards for the prevention of fraudulent and manipulative practices.
The approval could accelerate the crypto adoption by legacy investors as it would allow their mostly stocks-focused accounts to also incorporate spot Bitcoin ETF trading.
Coinbase was particularly boosted by the Cboe news given that the latter said it was working with the former in its effort to launch a spot Bitcoin ETF.
Congress members, including Shri Thanedar and Marie Newman, reported the sale of COIN shares at the end of 2022. On the other hand, Congressman Madison Cawthorn was acquiring Bitcoin in the first quarter of 2022, when the world’s largest digital asset was trading above $35,000 apiece.
