CCData’s research shows Bitcoin’s rapid rise to $35,000, driven by BlackRock rumors, alongside a notable decline in Grayscale Bitcoin discount.
The value of bitcoin recently increased by 7.56% in a little amount of time, hitting a high of $35,000, mostly due to rumours regarding BlackRock’s interest, according to CCData’s research.
The notable decline in the discount linked to Grayscale Bitcoin, which reached its lowest point since it was 12.6% on October 18, also reflects this shift.
The price of bitcoin surges by 7.56% in just one hour: Greyscale quickens
October saw significant advancements in the digital asset market, as was to be expected. Specifically, on October 2nd, six Ethereum-based exchange-traded funds (ETFs) went live, giving investors exposure to Ethereum futures.
Soon after, on reports of BlackRock’s potential involvement, the price of Bitcoin shot up 7.56% in less than an hour to a high of $35,000.
The total assets under management (AUM) in digital asset-related products increased by 6.74% to $31.7 billion as a result of these favourable developments.
Not since July 2023 has there been a growth noted, until now. The substantial decline in the discount linked to grayscale Bitcoin—which dropped to 12.6%, the lowest level since October 18—further demonstrated this shift.
Additionally, in October, there was a notable 44.3% growth in the average daily volume of investment products relating to digital assets, reaching $230 million.
The increasing value of Bitcoin and the expansion of the digital asset market
On the sixteenth, rumours that the BlackRock Bitcoin Spot ETF would be approved caused the price of bitcoin to spike. It increased 7.56% to a peak of $30,009 in less than an hour, indicating the possible influence of this approval.
After that, Bitcoin had a tremendous surge, increasing 28.3% between the start of the month and October 25. At the moment, it is trading for about $34,000.
Digital assets remained the dominant player in the US market, with AUM rising 3.22% to $24.5 billion, or 77.3% of the total.
Significant growth in AUM was also observed in Canada, which now holds 6.39% of the global market for digital assets with $2.03 billion in total. Another nation that saw notable increase, rising 16.0% to $698 million, was Germany.
Bitcoin-based products witnessed an 11.1% growth in AUM to $23.2 billion among products related to digital assets, giving them a market share of 73.3% (up from 70.5% in September).
On the other hand, despite the recent introduction of ETFs, Ethereum-based products experienced a decrease. With a 74.1% increase to $140 million, solana-related products witnessed the biggest increase in assets under management.
Compared to bitcoin, stocks related to cryptocurrencies showed a decrease in October.
These equities have dropped in relation to bitcoin for the second consecutive month. GLXY (Galaxy Digital Holdings Ltd), RIOT (Riot Platforms Inc), and COIN (Coinbase Global Inc) all had losses of 3.01%, 4.93%, and 0.56%, respectively.
The Future of Cryptocurrency Investing: The Ascent of Bitcoin ETFs
As predicted, news about bitcoin ETFs has had a significant impact on price fluctuations of the cryptocurrency in recent weeks, as investors anticipate that the SEC will soon approve an exchange-traded fund (ETF) with a bitcoin foundation.
With the clearance, investors would be able to purchase bitcoin directly through an exchange-traded vehicle, which is expected to significantly increase demand.
Renowned for his contentious association with the digital asset sector, SEC Chairman Gary Gensler recently discussed the subject at the 2023 Securities Enforcement Forum.
The likelihood of a bitcoin ETF being granted, however, has greatly increased with the submission of applications by major asset management firms like Fidelity and BlackRock. Many have even projected that an acceptance will occur before the end of the year.
As per SEC Chairman Gary Gensler’s confirmation, the agency is presently considering eight to ten applications for the approval of bitcoin exchange-traded funds.
It is significant to highlight that while every application has a unique filing date, the timing of approval is still unknown. The SEC’s comment period on Cathie Wood’s ARK Invest application ends on January 10, 2024.
By then, regulators will need to decide.
Following the SEC’s decision not to appeal a court decision finding Grayscale Bitcoin Investments’ application to convert its pre-existing bitcoin trust into a spot bitcoin ETF incorrect, interest in bitcoin-based exchange-traded funds (ETFs) has surged.
The digital asset industry may experience a paradigm shift as a result of this development.
