According to a recent report by CCData, the value of bitcoin has surged by 7.56% in a short period of time, reaching a high of $35,000. This increase is largely attributed to speculation about BlackRock’s interest in bitcoin. As a result, the discount associated with Grayscale Bitcoin has significantly reduced, reaching its lowest level since October 18th.
The digital asset sector experienced major developments in October, including the introduction of six ETFs based on Ethereum futures. These ETFs allow investors to gain exposure to Ethereum futures. Shortly after their launch, the price of Bitcoin skyrocketed by 7.56% in less than an hour due to rumors of BlackRock’s potential involvement.
These positive events had a significant impact on the total assets under management (AUM) in digital asset-related products, which increased by 6.74% to $31.7 billion. This growth is the first recorded since July 2023. The discount associated with grayscale Bitcoin also decreased to 12.6%, its lowest level since October 18th.
In addition, the average daily volume of investment products related to digital assets rose by 44.3% to $230 million in October.
Bitcoin’s price surge and the overall growth of the digital asset market were driven by speculation about the approval of the BlackRock Bitcoin Spot ETF. The price of bitcoin rose sharply and reached a high of $30,009 within an hour, indicating the potential impact of this approval. Bitcoin continued to rally throughout the month and is currently trading at around $34,000.
The digital asset market in the US dominated the scene with a 3.22% increase in AUM to $24.5 billion, accounting for 77.3% of the market. Canada also experienced significant growth with a total AUM of $2.03 billion, representing 6.39% of the digital assets market. Germany saw a 16.0% growth to reach $698 million.
Bitcoin-based products had an 11.1% increase in AUM to $23.2 billion, giving them a market share of 73.3%. On the other hand, Ethereum-based products saw a decline despite the launch of ETFs. Solana-related products saw the largest increase in assets under management, rising by 74.1% to $140 million.
Cryptocurrency-linked stocks, such as COIN, RIOT, and GLXY, experienced a decline in October compared to bitcoin.
The rise of Bitcoin ETFs has been a major factor influencing bitcoin price movements. Market participants are anticipating the approval of a bitcoin-based exchange-traded fund (ETF) by the SEC, which would allow investors to gain direct exposure to bitcoin through an exchange-traded product. With asset management giants like BlackRock and Fidelity submitting applications, the chances of approval have significantly increased.
There are currently eight to ten applications for approval of bitcoin ETFs before the SEC. The timing of approval remains uncertain as each application has a different filing date. Interest in bitcoin-based ETFs has grown following the SEC’s decision not to appeal a court ruling against Grayscale Bitcoin Investments’ application.
Overall, the digital asset sector is experiencing significant growth and potential game-changing developments with the rise of Bitcoin ETFs and increased investor interest.
Leo Nomist emerges as a maestro harmonizing the roles of crypto analyst, tenacious researcher, and editorial virtuoso, creating an unparalleled symphony of insight. Amidst the intricate world of digital currencies, Leo’s perspectives resonate like finely tuned chords, capturing the attention of curious minds from diverse horizons. His talent for deciphering complex threads of crypto intricacies blends seamlessly with his editorial finesse, translating intricacy into a captivating composition of understanding.