The cryptocurrency market experienced a seismic shift as the U.S. Securities and Exchange Commission (SEC) granted approval for Bitcoin exchange-traded funds (ETFs), marking a significant milestone for the digital asset industry. Bitcoin quickly surged past $47,000 in response, and Ethereum saw an 11% jump to reach a 20-month high, fueled by anticipation of the potential broadening of the investor base for these leading cryptocurrencies.

Bitcoin, the pioneer in the world of digital currencies, exhibited notable resilience, wobbling initially but ultimately rising above $47,000 after the regulatory nod for spot Bitcoin ETFs. Ethereum, the second-largest cryptocurrency, also witnessed a robust 11% surge, surpassing $2,500 for the first time in nearly two years. The approval's ripple effect extended to Grayscale's Bitcoin Trust (GBTC), with its shares reaching $40, the highest since December 2021.

Bitcoin price: (CoinMarketCap)

The SEC's decision to approve these ETFs comes after a decade of unsuccessful attempts, making it a historic moment for crypto enthusiasts and market observers. The significance lies not only in the approval but also in the shift from futures-based offerings to ETFs that can directly hold Bitcoin, elevating their appeal and potential impact on the market.

The anticipation surrounding the first Bitcoin ETFs in the U.S. intensified when financial giant BlackRock filed paperwork in June, followed by other applicants. These vehicles, viewed as superior to existing futures-based offerings, are expected to attract substantial inflows to the largest cryptocurrency, with optimism driven by BlackRock's successful track record in gaining regulatory approvals.

While Bitcoin miners like Marathon Digital and Riot Platforms showed no immediate price changes, the spotlight turned to the broader market's response and the potential demand for these investment vehicles. The approval also opens doors for Grayscale's Bitcoin Trust to convert into an ETF, as indicated by its shares reaching $40.

Coinbase, a major digital asset exchange, which plays a crucial role in the custody services for most Bitcoin ETF issuers, maintained a flat stock price around $151. The focus now shifts to how these approved ETFs will impact crypto prices, with the possibility of trading beginning as early as Thursday.

The crypto community eagerly awaits the broader impact of these products in the coming months. Ophelia Snyder, co-founder of crypto investment product issuer 21Shares, emphasized the need for patience, stating that the wider implications would take time to materialize.

Bartosz Lipiński, CEO at crypto trading platform Cube.Exchange, highlighted Ethereum's outperformance compared to Bitcoin amid the news. This suggests that altcoins may also reap benefits from the ETF approval, signaling potential opportunities beyond the primary cryptocurrency.

As the crypto industry absorbs this groundbreaking development, industry experts express varying perspectives on what lies ahead. Larry Fink, CEO of BlackRock, noted that the firm filed for a Bitcoin ETF last year due to clear customer demand, sparking a series of competing applications. Bitcoin's value has surged over 160% since then, with predictions of over $100 billion flowing into Bitcoin ETFs in the U.S. in the coming year.

The SEC's approval of 11 out of 13 Bitcoin ETF applications opens new possibilities for crypto adoption. The world will now witness the unfolding impact on the market. CoinDesk spoke to a range of experts, including traders, executives, and analysts, to gather insights on the significance of this moment for the entire crypto industry.

In conclusion, the SEC's approval of Bitcoin ETFs has injected fresh optimism into the cryptocurrency market, with Bitcoin and Ethereum leading the charge. The transition from futures-based offerings to direct Bitcoin holdings in ETFs is poised to reshape the landscape, attracting new investors and potentially driving substantial capital into the digital asset space. As the industry navigates uncharted waters, only time will reveal the true extent of the impact of these approved ETFs on the broader crypto market.