The world's largest and most popular virtual currency, Bitcoin, extended gains amid anticipation that a bitcoin exchange-traded fund is on the way. The digital currency gained over 11% to surpass the $35,000-mark, for the first time since May 2022. The crypto currency pared losses, and was last trading near $34,000.

Anticipation regarding bitcoin ETF grew after various reports suggested that the US Securities and Exchange Commission will not appeal the court ruling it had been wrong to reject an ETF application from crypto firm Grayscale Investments.

At the last count, the second largest virtual currency, Ethereum or Ether was last trading at $1,816, up 6.8% from Monday.

An exchange-traded fund (ETF) owning bitcoin on behalf of fund investors would allow those reluctant to trade crypto markets a means to access the asset via the stock market. Investment giant BlackRock is among the US financial firms who are in race to offer bitcoin ETFs.