Bitcoin, Ethereum surge by double digits, cryptocurrency market adds $100 billion

All eyes are on Bitcoin (BTC), the industry's largest cryptocurrency, as it surged 12.6% in a single day and is trading above $34,000.

The largest cryptocurrency by market cap surged above $35,000 late Monday but has since fallen to $34,540 at the time of writing, according to data from CoinGecko.

This is Bitcoin's highest price since May of last year, and according to CoinGlass, the move means that more than $310 million in short positions have been liquidated in the past 24 hours.

Interestingly, the BTC Fear/Greed Index, a common indicator of overall sentiment towards Bitcoin, has spiked to 66, indicating that it is now in “greed” territory.

Ethereum (ETH) also saw a strong rally, hitting its highest level since August.

At the time of writing, the second-largest cryptocurrency is up 10% in a day and trading at $1,830.

Meanwhile, the total market capitalization of all digital assets increased by more than $100 billion during the period, 9.3% above its highest level since April of $1.3 trillion, according to CoinGecko.

More than half of that is in Bitcoin, and several significant events occurred on Monday that are sparking a new wave of optimism about the possible launch of a spot Bitcoin ETF.

Is a Bitcoin ETF on the way?

Recently, several ETF applications have been gaining attention.

First, Grayscale's Bitcoin Trust (GBTC) offers holders exposure to Bitcoin through shares. However, the shares have recently been trading at a steep discount because holders cannot redeem the underlying assets. Grayscale is seeking to solve this problem by filing to convert the trust into a full-fledged Bitcoin ETF.

The application was initially rejected by the SEC, but earlier this month a court ruled against the SEC's denial and yesterday the SEC was ordered to reexamine the application.

Another major factor in Bitcoin's recent surge in value is the inclusion of BlackRock's iShares Bitcoin Trust on the list of Nasdaq-listed ETFs managed by the American Depository Trust and Clearing Corporation (DTCC), the world's leading financial settlement institution.

Last week, BlackRock filed an amended prospectus for a spot Bitcoin ETF application that included detailed descriptions of the proposed product’s pricing and reporting mechanisms, and news that the DTCC has listed the ticker before actual trading has begun has undoubtedly fueled speculation about an imminent launch.

“Ever since the ticker for the BlackRock Bitcoin Spot ETF appeared on the Depository Trust and Clearing Corporation (DTCC) listing, rumors have been circulating that the world's largest asset managers have already started buying Bitcoin for the fund,” Stephen Rast, CEO of independent inflation data aggregator Truflation, said in an emailed statement. “This could be an early sign of a long-awaited 'crypto spring.' There is a sense that after years of waiting, this US ETF is now a reality.”

Editor: Liam Kelly.