Bitcoin surges to 18-month high on ETF hopes

The news: Bitcoin has rallied to its highest level since May 2022 as hopes build for the regulatory approval of an exchange traded fund (ETFs) linked to the cryptocurrency.

The numbers: The price of bitcoin had soared to USD35,157 ($55,289) on US exchange Coinbase by around 1:30pm AEDT, from around USD26,800 in mid-October. The price dropped as low as USD15,460 in November 2022 in the aftermath of the Bankman-Fried-led FTX collapse.

The context: BlackRock, VanEck, WisdomTree, Fidelity, Bitwise and Invesco all have pending bitcoin ETF applications awaiting approval. The US Securities and Exchange Commission was recently asked by the US Court of Appeals to re-evaluate its rejection of a bitcoin ETF, which has fuelled speculation of future approval of such a security. Related shares such as crypto mining stocks and bitcoin accumulator MicroStrategy all rose sharply on the rally.