Wall Street Crypto Firms Ride the Bitcoin Wave to Record Highs

Shares of U.S.-listed cryptocurrency companies gained between 7% and 13% before the bell on Wednesday, powered by bitcoin crossing the $1 trillion market value for the first time in more than two years amid improving investor sentiment.

Bitcoin prices have been steadily gaining ground following the U.S. securities regulator's approval of the first spot bitcoin exchange-traded funds (ETFs) last month.

The launch of ETFs has been touted as a game-changer for the industry, already known for its appeal to retail traders, since investors can now have an exposure to bitcoin without directly holding the asset.

"We think the best days of bitcoin are ahead," Bernstein analyst Gautam Chhugani said.

"The ETF has added a sense of legitimacy, so far missing in the crypto sector. We expect many of these new bitcoin enthusiasts to allocate capital in the coming days and we think bitcoin ETFs or bitcoin miners could benefit."

Crypto exchange Coinbase's stock jumped about 7%, while miners Riot Platforms and Bitfarms gained nearly 8% and 11%, respectively.

Bitcoin's market value crossed $1 trillion for the first time since Nov. 2021, according to data platform CoinMarketCap.com.

Last valued at $1.08 trillion, it is worth more than twice the market value of JPMorgan Chase, the biggest U.S. bank, and was closing in on Meta Platforms' $1.17 trillion.

The largest cryptocurrency was trading up 3.7% at $51,300.