SFGate

Becky Etched window film or have a professional actually etch it permanently.

eztia I like Becky's suggestion. Have a professional etch or "frost" the glass.
You could also replace the glass with privacy glass, but that means replacing your perfectly good glass for another kind.

Shelley Sims/Thrive Design What about adding a two layer drapery rod. One layer is a sheer that allows the light to come in and the second layer is different fabric with more opaqueness or a good lining that would provide for privacy. There are many styles of drapery rods that allow for this two curtain set up depending on the styling of the rest of the room. You could do iron with rings that easily slide open, or a rod attached to the ceiling for a bit more drama.

ASVInteriors Instead of etching, you can use frosted film that peels on and off www.brume.co.uk is an example. http://www.specialistwindowfilmsltd.co.uk/gecko.php is a cutting edge product, but you would need to contact the manufacturers for retail outlets in your area.
However, you might want to see out - in that case, could you install shutters with louvers that you can turn to let the view in or keep the light out?

DIAspoton installing glass block or a beveled window would allow light while provding privacy

spmm Is the first floor the ground level? If so are you able to enclose the area outside of the bathroom to make a private space? If not and depending on budget, then window film is an affordable option, just make sure to check it from outside, an opaque version may be best, it is easy to diy, glass brick can also look great, may reduce ventilation if the window provides ventilation as well as light.

Amy Thanks for your input, everyone. The home is brand new construction and it is ground floor. I was considering a double rod with solid drapes over sheers as Shelly suggested, just wasn't sure if that was appropriate/too formal for a bathroom. I appreciate all the ideas!

blindsdirectcanada I agree with ASVInteriors I think shutters are a great choice in a bathroom .

eztia I think you will be happier with shutters than draperies.