Market IntelligenceDigital Currencies Went Crazy in the Wake of the SEC’s Bitcoin RulingJeff John RobertsSomething strange is happening in the world of digital currency.When the Securities and Exchange Commission passed a harsh judgment last week on bitcoin, many expected the entire asset class to crumble.Instead, the opposite has happened.The SEC ruling, if you missed it, came down on Friday afternoon.The long-awaited decision, citing the possibility of fraud and market manipulation, rejected a proposal to create an exchange traded fund (ETF) for bitcoin, and threw cold water on hopes institutional investors would use the ETF to stock up on the currency.The market quickly punished bitcoin, driving its price down to around $1,050—a more than 15% drop from its highs earlier that day.But when it came to other digital currencies, investors didn't bail on them.They started gobbling them up.These other currencies such as Ethereum and Ripple (there are dozens) aren't as famous as bitcoin but have been around for a while, and some people treat them as a proxy asset for bitcoin.

Since the SEC decision, they've all shot up, some of them dramatically.Here is a chart that shows how the prices have changed.The data is compiled from each currency's lowest price on March 10 (the day of the ruling) through Tuesday morning:As you can see, Ethereum has made spectacular gains.bitcoin quebec cityThe currency, which is tied to a popular new form of blockchain technology, is up around 60%.ethereum t shirtDash, a less well-known bitcoin rival, is up about 59%.Get Data Sheet, Fortune’s technology newsletterThe other surprise in chart is how nicely bitcoin has recovered from the SEC's punch last Friday.ethereum news calendarHere's a closer look, courtesy of Coindesk, of how its price has moved since Friday:As you can see, bitcoin is nudging back towards its near all-time high of $1,300, which came amid a frenzy of speculation that a positive SEC ruling would send the price soaring.For now, there is no clear explanation of why bitcoin recovered so quickly, or why the so-called "alt-currencies" like Dash initially rose when bitcoin fell.bitcoin litecoin kurs

Some commentators have suggested the recent boom comes from new digital currency converts who learned about the assets as a result of the publicity surrounding the ETF decision.Others say the recent prices simply reflect the fact that digital currencies are a far more sturdy asset than they were two years ago, and their values can no longer be derailed by a bit of negative news.It's also worth noting the SEC jolt from last week has brought about a change in the makeup of the overall market cap for digital currency.ethereum mist clientNote below how bitcoin's share of the pie has dropped about 10% since the news:The upshot of this is that while bitcoin still clearly dominates the digital currency world, other assets—particularly Ethereum—may now be emerging as more than also-rans.remove bitcoin-qtBitcoin has risen around 2 percent in the past day, pushing towards its all-time high on renewed hope that U.S.ethereum miner hashrate

regulators could approve a key trading product for the cryptocurrency.The price of Bitcoin against the dollar stood at around $1281.17 during mid-morning trade in London, according to CoinDesk data, up from $1251.46 a day ago.bitcoin khan academyOptimism in the market has come from an announcement in the U.S.bitcoin atm georgiathat the Securities and Exchange Commission (SEC) is reviewing its decision to reject a bitcoin exchange-traded fund (ETF) proposed by Cameron and Tyler Winklevoss.Last month, the SEC denied an application by the Winklevoss twins to list the ETF, which would have made it the first product of its kind in the U.S.The proposal involves listing the ETF on the Bats BZX exchange, one of the largest U.S.Bats filed a notice of petition to review the SEC decision which has now been accepted.It means the SEC will look into its initial decision to reject the ETF.

"The Commission hereby establishes that any party to the action or other person may file a written statement in support of or in opposition to the Disapproval Order on or before May 15, 2017," the SEC said in a statement posted on its website on Tuesday.Traders are hoping that this at least opens the doors to the ETF getting a second shot at being approved."The news of the review has definitely excited speculators, although it's unclear if this will alter the SEC's decision.So the gains in the last 24 hours may be temporary," Thomas Glucksmann, head of marketing at regulated cryptocurrency trading platform Gatecoin, told CNBC via email.In the last 24 hours from the time of publication, nearly two-thirds of trades were to buy bitcoin while the rest were to sell, showing the current bullishness around the asset.Bitcoin has been on a steady rise for the past month, up around 23 percent.It is also closing in on its all-time high of $1,325.81 hit in March.The price movement has been supported by a number of factors including Japan beginning to accept bitcoin as legal currency as well as the Russian government making comments about looking to recognize cryptocurrencies as legal financial instruments in 2018.

But bitcoin has also had its recent problems.There is a debate among the community over the future of the underlying technology and how that plays out in the future.For a full rundown of this issue, click here.There were also problems this month with customers on some bitcoin exchanges struggling to withdraw fiat currency from their accounts.The Securities and Exchange Commission on Friday rejected a proposed rule change that would’ve allowed for the creation of the first bitcoin exchange-traded fund—a decision that has followers of the world’s largest cryptocurrency wondering what happens next.In its ruling, the SEC said it was unnerved by the lack of regulation in a market that is largely based outside of the U.S., and was worried about the potential for market manipulation.Fortunately for investors who were hoping to buy into the fund, Friday’s decision won’t necessarily preclude the approval of other proposed bitcoin ETFs.Two other companies are vying to become the first bitcoin-focused ETF, but what might happen next is unclear.

The New York Stock Exchange filed a proposed rule change with the SEC on Jan.25 to allow the Grayscale Bitcoin Trust to trade on its ETF exchange, NYSE Arca.The agency now has until Friday, Sept.22 to issue its ruling.Barry Silbert, the chief executive officer of the Digital Currency Group, Grayscale’s parent company, declined to comment on the Winklevoss decision.NYSE Arca filed another rule-change proposal to list shares of the SolidX Bitcoin Trust, another product vying to be the first bitcoin ETF, back in July, but it is unclear what is happening and representatives for SolidX couldn't be reached for comment.One factor that differentiated the Winklevoss proposal from its rivals was the mechanism for tracking the bitcoin price.The Winklevosses planned to use pricing data gleaned from Gemini, a digital-currency exchange launched in late 2015 that commands less than 1% of the bitcoin market.Both the Grayscale and SolidX proposals would peg the price to the TradeBlock bitcoin index.Grayscale’s proposal is widely viewed as the favorite within the bitcoin community, largely because shares of its trust GBTC, +3.34% already trade over-the-counter, often at a premium to bitcoin’s net-asset value.

But some have expressed concerns about potential conflicts of interest at Grayscale.In a comment letter filed with the SEC, Jeffrey Wilcke, a representative of the Ethereum Foundation, pointed out the relationship between the Grayscale trust and CoinDesk, an online news service that covers the digital-currency market.Both Grayscale and CoinDesk are owned by DCG.Wilcke couldn't be reached for comment.Jerry Brito, chief executive director of Coin Center, a bitcoin advocacy group, said the SEC’s concerns about regulation create a “chicken and egg problem.” “How do we develop well-capitalized and regulated markets in the U.S.and Europe if financial innovators aren’t allowed to bring products to market that grow domestic demand for digital currencies like bitcoin?,” he said in an emailed statement.When asked about what’s next for bitcoin, Chris Burniske, blockchain analyst and products lead at ARK Invest, said it is “clear that the SEC still has a way to go in terms of getting comfortable with the bitcoin markets.” Bitcoin market experts said the Winklevoss’s could modify their proposal to address some of the agency’s concerns, but that they would need to start the process again from the beginning, and that BATS would need to issue a new proposed rule change, which the agency would then have a maximum of 240 days to consider.