According to CCData, the value of Bitcoin surged by 7.56%, reaching a peak of $35,000, driven by a wave of interest and speculation.
In October, six ETFs based on Ethereum futures were introduced to the market, opening up new opportunities for investors.
Shortly after the introduction of these ETFs, Bitcoin saw a price increase, surging by 7.56% in less than an hour to reach a high of $35,000. The catalyst behind this surge was speculation regarding BlackRock’s potential involvement in the market.
This surge is accompanied by a noteworthy reduction of 12.6% in the discount associated with Grayscale Bitcoin, marking its lowest level since October 18.
These positive events resulted in a 6.74% increase in the total assets under management (AUM) in digital asset-related products, reaching $31.7 billion.
This marks the first significant growth in AUM since July 2023 and signifies a resurgence of investor interest in the sector.
Sooner or Later, It Will Be Approved
Speculation surrounding Bitcoin ETFs also plays a key role. Major financial institutions like BlackRock have submitted their proposals. All market players closely watch the approval of one of them by the SEC.
This approval could represent a significant boost to the sector, as it would allow investors to gain direct exposure to Bitcoin through an exchange-traded product.
However, SEC Chairman Gary Gensler has been extensively involved in regulatory oversight, often rejecting and dismissing proposals that he deems insufficient.
Currently, there are eight to ten pending applications for Bitcoin ETF approval before the SEC, each with different filing dates.
The first of these applications comes from ARK Invest. The SEC’s comment period ends on January 10, 2024. Regulators are expected to make a decision by that date.
The growing interest in Bitcoin-based ETFs surged following the SEC’s decision not to appeal a ruling that found an error in Grayscale Bitcoin Investments’ application to convert its existing Bitcoin trust into a spot Bitcoin ETF.
Bitcoin-based products saw an 11.1% increase in AUM, reaching a total of $23.2 billion, claiming a market share of 73.3%, up from 70.5% in September.
In the digital asset market, the United States continues to dominate, with a 3.22% increase in AUM, reaching $24.5 billion, representing 77.3% of the total market share.
Canada also witnessed significant growth, constituting 6.39% of the digital assets market with a total of $2.03 billion. Germany is another country experiencing substantial growth, with a 16.0% increase to reach $698 million.