Bitcoin crosses $35,000 for first time since May 2022

Cyrptocurrency Bitcoin leapt as much as 16% to an 18-month high of $35,080.66 in early Asia hours on Tuesday, on speculation that the US could soon approve a Bitcoin exchange-traded fund.

Bitcoin was last up 16% at $35,080.66, showed data on Binance. Smaller rival Ethereum was up nearly 9% at $1,830, thus breaking above its 200-day moving average.

Crypto-related shares such as exchange Coinbase Global, miner Marathon Digital, Bitcoin holder MicroStrategy rose sharply and were making further gains in after-hours US trade.

Anticipation of a bitcoin exchange-traded fund (ETF) has grown after reports this month, including from Reuters, that the US Securities and Exchange Commission won't appeal a ruling it was wrong to reject an application from Grayscale Investments.

The prospect of a spot Bitcoin ETF is seen driving broader flows into the cryptocurrency, as it would allow a wider set of investors to buy exposure without directly trading it.

Data on the Depository Trust and Clearing Corporation (DTCC) website is being used as evidence that Blackrock is preparing for the ETF's launch. Blackrock's iShares ETF is on a list of ETFs on the website of clearing house DTCC, driving the most recent round of speculation that its approval is imminent.

An SEC approval of the ETF would likely mean that many other Bitcoin ETF approvals are coming.

VanEck, WisdomTree, Fidelity, Bitwise and Invesco also have pending Bitcoin ETF applications. 

The price of Bitcoin is officially up 107% this year alone, adding over $300 billion of market capitalisation. Bitcoin's market cap is $670 billion after dropping below $300 billion last year.

As geopolitical tensions worsen, Bitcoin is also being viewed as a safe haven asset.

With inputs from Reuters