Oct 23 (Reuters) - Bitcoin soared 10% to 1-1/2 year highs on Monday, and crypto-linked stocks followed it higher as speculation about the possibility of a bitcoin exchange-traded fund drove enthusiasm about the sector and prompted short-sellers to quit positions.

The world's biggest cryptocurrency was last at $32,833 after trading as high as $34,283. Crypto-related shares such as exchange Coinbase Global (COIN.O), miner Marathon Digital (MARA.O) bitcoin holder MicroStrategy (MSTR.O) rose sharply and were making further gains in after-hours U.S. trade.

Smaller rival ether also surged 6%, hitting a two-month high and breaking above its 200-day moving average.

Anticipation of a bitcoin exchange-traded fund (ETF) has grown after reports this month, including from Reuters, that the U.S. Securities and Exchange Commission won't appeal a ruling it was wrong to reject an application from Grayscale Investments.

The prospect of a spot bitcoin ETF is seen driving broader flows into the cryptocurrency, as it would allow a wider set of investors to buy exposure without directly trading it.

https://www.reuters.com/technology/bitcoin-rises-395-31187-2023-10-23/