(Bloomberg) — Bitcoin surged above $31,000 for the first time since July as a US federal appeals court made final a ruling that effectively clears the way for the issuance of an exchange-traded fund that invests directly in the cryptocurrency.

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The mandate puts into effect the court’s ruling in August, when it overturned the Securities and Exchange Commission’s rejection of Grayscale Investments LLC’s proposal to convert its trust into an ETF. Judge Neomi Rao had called the SEC’s decision “arbitrary and capricious” because the regulator failed to explain why it approved similar products. The SEC had argued that an ETF based on Bitcoin lacked adequate oversight to detect fraud. The move sends the matter back to the SEC.

Monday’s increase of as much as 5% comes on the back of a 9.8% jump in the seven days through Sunday — the biggest weekly advance since June. Traders are betting on a possible ETF approval by as soon as the end of the year.

In the past five years, weekly gains of at least that magnitude presaged a 10% average Bitcoin climb over the subsequent month, data compiled by Bloomberg show.

Asset managers BlackRock Inc. and Fidelity Investments are among the fund firms in the race to offer a spot Bitcoin ETF in the US. Some argue these funds will bring new inflows into the highest-profile cryptocurrency.

“The drums seem to be beating louder that a Bitcoin ETF will be approved by year-end, which would be supportive for the token in the medium term as it will likely bring more

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