Cryptocurrency Markets Rise as SEC Reviews Bitcoin ETF Applications

Cryptocurrencies experienced a surge in value on Monday as the U.S. Securities and Exchange Commission (SEC) announced a review of Bitcoin exchange traded funds (ETFs). Bitcoin, the leading cryptocurrency, rose by 0.20% to $6,725.10, while other major coins like Ethereum, XRP, and Litecoin also witnessed gains. The SEC's decision to reconsider Bitcoin ETF applications boosted the overall sentiment in the cryptocurrency market.

Bitcoin and Cryptocurrencies Surge Amid SEC ETF Review

The cryptocurrency market witnessed a notable rise on Monday, fueled by ongoing optimism surrounding the U.S. Securities and Exchange Commission's (SEC) review of Bitcoin exchange-traded fund (ETF) applications. This development has served as a catalyst for the upward momentum of digital coins.

Bitcoin, the predominant cryptocurrency, experienced a 0.20% increase to trade at $6,725.10 on the Bitfinex exchange at 8:17 AM ET (12:17 GMT). The overall cryptocurrency market also exhibited gains, with the aggregate market capitalization expanding from $212 billion on Friday to $217 billion at the time of writing.

Ethereum, the second-largest cryptocurrency by market cap, gained 0.50% to reach $276.25. XRP, the third-largest virtual currency, surged by 1.41% to $0.32780, while Litecoin posted a 0.62% increment to settle at $57.509.

The positive sentiment in the cryptocurrency market was initially sparked on Friday when the SEC announced its decision to review a previous rejection of Bitcoin ETF applications. The SEC had initially dismissed nine such applications, raising concerns about fraud and market manipulation.

In a notable development, Bank of America (NYSE:BAC) has filed for a blockchain patent related to securing the storage of cryptocurrency. This patent, granted on August 23, involves the implementation of encryption and linking data to specific blocks within a blockchain as a security measure.

Bank of America is among the growing number of financial institutions exploring blockchain technology, the underlying foundation of virtual currencies. While many bank executives have expressed skepticism towards Bitcoin and other cryptocurrencies, their interest in blockchain indicates a recognition of its potential applications.

The SEC's ongoing review of Bitcoin ETF applications and the filing of blockchain-related patents by major financial institutions suggest a gradual shift in sentiment towards digital currencies and their underlying technology. While regulatory uncertainties persist, these developments provide a glimmer of hope for the cryptocurrency industry, signaling a potential path towards mainstream adoption.