Cryptocurrency prices jumped on Tuesday morning, as bitcoin rallied on the hope that a spot bitcoin exchange-traded fund (ETF) could be approved soon. The price of bitcoin was up nearly 12.4% from the previous 24 hours, reaching its highest level since May 2022.

The surge in prices was spurred by the U.S. Appeals Court’s recent decision to order the Securities and Exchange Commission (SEC) to review the ETF application submitted by Grayscale Investments (GBTC). The SEC can still reject the application, but it would need a new justification if it does.

Grayscale, along with other firms such as ARK Invest, VanEck, BlackRock (BLK) and Coinbase (COIN), have all filed for a bitcoin ETF.

Institutional demand for a spot bitcoin ETF is stronger than ever, according to Diogo Monica, co-founder and president of Anchorage Digital. He added that an SEC approval would bring about greater demand from RIAs and large asset managers for crypto infrastructure.

The sentiment in the industry is positive. Coinbase Chief Legal Officer Paul Grewal said he is “quite hopeful these applications will be granted,” during a CNBC interview last week, while ARK Invest CEO Cathie Wood expects spot bitcoin ETF approval to occur this year or in early 2024.

Wood and ARK Invest appear to be using the recent rally to take some profits. On Monday, the firm sold a total 42,613 shares of COIN stock from its ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF). ARK also sold 100,739 shares of Grayscale’s Bitcoin Investment Trust from ARKW.

Cryptocurrency prices were green early Tuesday. Bitcoin reached $34,700 while ethereum rallied to $1,850, up more than 10% over the past 24 hours.

GBTC stock was up nearly 8% in premarket action, while Coinbase stock jumped 8.5%. Bitcoin miner Marathon Digital (MARA) and Riot Platforms (RIOT) both surged 17% and 18.3%, respectively. MicroStrategy (MSTR) also gained 12.4% Tuesday after climbing 8.5% Monday. The computer software company holds 158,245 bitcoin with an average purchase price of $29,582 as of Sept. 24, according to CoinDesk.

Overall, the positive sentiment has been encouraging, with some industry players expecting the SEC to approve a spot bitcoin ETF. The approval would lead to greater demand for crypto infrastructure and likely cause cryptocurrency prices to rise further.