It's been a bouncy week for ASX shares this week thus far. Following a drop yesterday, the S&P/SX 200 Index (ASX: XJO) is back on form this Thursday, currently up a decent 0.41%. But let's talk about the BetaShares Crypto Innovators ETF (ASX: CRYP), which is putting the broader markets to shame.
This ASX exchange-traded fund (ETF) is on fire. CRYP units closed at $4.41 each yesterday. But today, the fund has vaulted an impressive 6.12% higher up to $4.68 a unit at the time of writing.
So what on earth is going on with this cryptocurrency-focused ETF that has prompted such a big pop today?
Why is the Crypto Innovators ETF surging this Thursday?
Well, it's hard to know for sure. But we have a pretty good idea as to what's going on here.
Last night (our time), the United States Securities and Investment Commission (SEC) made a big and much-anticipated announcement. The SEC will now allow several new Bitcoin (CRYPTO: BTC) spot ETFs to list on the US markets.
Until now, investors weren't able to directly invest in cryptocurrencies like Bitcoin using an exchange-traded fund. Funds that used futures or other derivatives were allowed. But not funds that held Bitcoin directly.
But that's all changed now, with the SEC's ruling effectively giving the green light to several new funds to start trading almost immediately. For now, other cryptocurrencies like Ethereum (CRYPTO: ETH) won't be included.
The Crypto Innovators ETF doesn't directly invest in cryptocurrencies like Bitcoin itself. However, it does invest in shares of companies that directly facilitate the mining, trading and investment in the digital coins.
Last night's ruling didn't come during normal trading hours, so we can't really know how it will affect the companies in CRYP's portfolio (although we have seen some big gains in after-hours trading).
But it's almost certainly going to be a positive for these shares, which include Marathon Digital Holdings Inc (NASDAQ: MARA) and Coinbase Global Inc (NASDAQ: COIN). As such, it's no big surprise to see a big surge in investor interest in the BetaShares Crypto Innovators ETF today.
It will be interesting to see how this ETF fares over the rest of the week, considering this big news.
