October witnessed significant advancements in the industry owing to the launch of six ETH Futures ETFs, offering investors a chance to delve into Ether futures. Bitcoin responded positively to the developments. Further gains were fueled by speculations about BlackRock’s application approval of a spot BTC ETF in the United States.
As a result, the total assets under management (AUM) for digital asset products surged by 6.74%, reaching $31.7 billion in October. This represented the first upturn since July 2023.
The narrowing Grayscale discount, which hit its lowest point at 12.6% on October 18th, further exemplified the shift, as per the latest report by crypto data provider CCData. The decrease in the disparity between the Trust’s market price and its Net Asset Value (NAV) mirrors the increasing confidence in the approval of a spot Bitcoin ETF.
SOL-based Products See 74% Increase in AUM
Despite affiliation to FTX and its disgraced founder, Sam Bankman-Fried, as well as its own share of outages, Solana has managed to recover this year. This is evident by the continued inflow streak over the past several weeks.
According to CCData’s report, Solana-based products stood out among its rivals and observed the most significant AUM increase during the period, soaring by 74.1% to $140 million in October.
Meanwhile, the assets under management (AUM) for Bitcoin-based products also surged by 11.1%, reaching $23.2 billion and commanding a 73.3% market share. This signifies a rise from 70.5% in September.
Ethereum-based products, however, witnessed a decrease despite the introduction of new ETFs. These products collectively experienced a 5,45% decline, lowering their AUM to $6,35 billion, and their market share dropped to 20.1%. This marks a down from 22.6% in September.
Basket-based products, on the other hand, saw a 2,10% increase, reaching $1,19 billion and capturing 3,75% of the market.
Meanwhile, ATOM-based products, which include 21Shares ATOM and CoinShares COMS, recorded the second-highest increase, rising by 58.6% to $2,15 million.
In October, the average daily combined trading volumes of digital asset investment products exhibited a significant upswing, soaring by 44.3% to reach $230 million. This surge underscored the optimism among market participants regarding ETF approvals.
Notably, this increase marked the third-largest monthly volume boost, with January and March 2023 being the only months surpassing it.
Crypto-Related Stocks Takes a Hit
For the second consecutive month, crypto-related stocks saw a decline in comparison to Bitcoin, as enthusiasm surrounding a BTC ETF and the substantial 11.4% rise in the asset’s price in October took center stage.
Interestingly, COIN (Coinbase Global Inc), RIOT (Riot Platforms Inc), and GLXY (Galaxy Digital Holdings Ltd) all experienced decreases of 0.56%, 4.93%, and 3.01%, respectively.
The trend can be primarily attributed to the ongoing macroeconomic conditions, which have displayed a more “hawkish stance,” CCData cited. This shift in economic sentiment is propelled by concerns of an impending recession and the Federal Reserve’s reluctance to lower interest rates, at least until May 2024.
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