October Sees Surge in Crypto Assets Under Management (AUM)
In October, the launch of six ETH Futures ETFs provided investors with an opportunity to engage in Ether futures. This, along with speculation about BlackRock’s application for a spot BTC ETF approval, led to positive gains in Bitcoin. As a result, the total assets under management (AUM) for digital asset products increased by 6.74% to reach $31.7 billion, marking the first upturn since July 2023.
The narrowing Grayscale discount, which reached its lowest point at 12.6% on October 18th, reflects the growing confidence in the approval of a spot Bitcoin ETF. The decrease in the disparity between the Trust’s market price and its Net Asset Value (NAV) signifies this shift.
SOL-based Products Experience Significant AUM Increase
Despite its affiliation with FTX and its founder Sam Bankman-Fried, Solana has managed to recover this year. In October, Solana-based products stood out among competitors with a 74.1% increase in AUM, reaching $140 million.
Bitcoin-based products also saw a surge in AUM, rising by 11.1% to $23.2 billion and capturing a 73.3% market share. Ethereum-based products, however, experienced a decline of 5.45%, lowering their AUM to $6.35 billion and reducing their market share to 20.1%. Basket-based products saw a modest increase of 2.10%.
ATOM-based products recorded the second-highest increase, rising by 58.6% to $2.15 million.
Increase in Trading Volumes for Digital Asset Investment Products
In October, the average daily combined trading volumes of digital asset investment products increased by 44.3% to $230 million. This surge in trading volumes highlights market participants’ optimism regarding ETF approvals and marks the third-largest monthly volume boost.
Crypto-Related Stocks Decline
Crypto-related stocks, including COIN, RIOT, and GLXY, experienced decreases of 0.56%, 4.93%, and 3.01%, respectively, for the second consecutive month. This trend can be attributed to the macroeconomic conditions characterized by a more “hawkish stance.” Concerns about an impending recession and the Federal Reserve’s reluctance to lower interest rates contribute to this shift in economic sentiment.
Hot Take: October Shows Positive Momentum for Crypto Assets
October proved to be a promising month for the crypto industry, with significant advancements in asset management and trading volumes. The launch of ETH Futures ETFs and speculation about a spot BTC ETF approval boosted investor confidence and led to gains in Bitcoin. Solana-based products stood out with a remarkable increase in AUM, while Bitcoin continued to dominate the market share. However, Ethereum-based products experienced a decline despite the introduction of new ETFs.
Crypto-related stocks, on the other hand, faced challenges as concerns about global economic conditions persisted. Overall, October showcased positive momentum for crypto assets, indicating the growing interest and potential for further growth in the industry.
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