(Reuters) – Shares of U.S.-listed crypto companies were down 7%-13 before the bell on Wednesday, boosted by Bitcoin's market cap topping $1 trillion for the first time in more than two years as investor sentiment improved. %Rose.
Bitcoin prices have been steadily rising after US securities regulators approved the first spot Bitcoin exchange-traded fund (ETF) last month.
The launch of ETFs is a game-changer for an industry that was already known to be attractive to retail traders, as it allows investors to have exposure to Bitcoin without directly owning the assets. It has been touted as something that will help.
“We think Bitcoin’s best days are yet to come,” Bernstein analyst Gautam Chughani said.
“ETFs have added a sense of legitimacy that was previously lacking in the cryptocurrency sector. We expect many of these new Bitcoin enthusiasts to allocate capital within days, and we believe that Bitcoin We think ETFs and Bitcoin miners could benefit.”
Shares of cryptocurrency exchange Coinbase rose about 7%, while miners Riot Platforms and BitFarms rose nearly 8% and 11%, respectively.
Bitcoin's market value has surpassed $1 trillion for the first time since November 2021, according to data platform CoinMarketCap.com.
At its previous valuation of $1.08 trillion, it was worth more than twice the market capitalization of JPMorgan Chase & Co., the largest U.S. bank, and close behind Meta Platforms' $1.17 trillion.
The largest cryptocurrency rose 3.7% to trade at $51,300.
(Reporting by Niket Nishant and Medha Singh in Bengaluru; Editing by Shriraj Kaluvila)
