Crypto Stocks Surge as Bitcoin Rallies on Hopes for SEC Approval of Spot ETF

Shares of crypto companies like Coinbase, MicroStrategy, and Galaxy Digital surged over 14% as bitcoin rose above $34K.

The rally was fueled by hopes that the SEC may approve a spot bitcoin ETF proposed by BlackRock.

If approved, asset managers would have to buy and hold bitcoin to back the ETF, boosting bitcoin's price.

Bitcoin mining stocks like Marathon Digital also saw gains of over 15% due to their exposure to bitcoin's price movements.

However, bitcoin's price remains volatile, so negative ETF news could quickly reverse the gains.