The listing on the stock exchange of the first US ETF attracted many investors interested in cryptocurrencies. The trading volumes of ETH and other altcoins such as SOL, ADA, and BNB also saw increases.
The global market capitalization of cryptocurrencies reached an all-time high of USD 2.6 trillion this week. The launch of the first Bitcoin ETF of ProShares, BITO, and a rally in the prices of cryptocurrencies boosted it.
The volume of the market hit that record when the price of Bitcoin reached its new all-time high of USD 66,974. The pioneering cryptocurrency is currently trading at around USD 61,439 and has a daily trading volume above USD 34.9 billion, according to CoinGecko.
There was dominance by Bitcoin exchange-traded funds (ETFs) while all cryptocurrency-related operations had a 98% share. That percentage showed the interest from investors in acquiring crypto assets.
The mediations of the US Securities and Exchange Commission (SEC) and investors caused this market phenomenon. The SEC allowed the Bitcoin ETF to go public on the stock exchange, which attracted many investors interested in cryptocurrencies.
The first Bitcoin ETF of ProShares went public on the New York Stock Exchange (NYSE) on October 19th. After nearly a decade of filing with the SEC for the launch, the BITO ETF raised around USD 3.5 billion.
Ethereum Cryptocurrency Wants to Follow the Footsteps of Bitcoin
A few days ago, the price of the Ethereum cryptocurrency Ether also hit a new all-time high of USD 4,361.
Despite the increase in the price of Ether, there was a considerable withdrawal of funds from the cryptocurrency for three consecutive weeks. Last week, investors withdrew a total of USD 1.4 million in funds from the Ethereum network.
Ether is trading at around USD 4,258 and has accumulated an 8.9% profit in the past week. Its daily trading volume is above USD 19 billion, while its market capitalization is approximately USD 500 billion, according to CoinGecko.
The trading volumes of other cryptocurrencies also experienced significant increases. Notable altcoins include Solana (SOL) with USD 8.1 million, Cardano’s ADA with USD 5.5 million, and the Binance exchange cryptocurrency (BNB) with USD 1.8 million.
The VanEck ETF Is Preparing to Go to the Market
The VanEck Bitcoin Strategy ETF (XBTF) will soon join the Bitcoin Exchange Traded Funds market. After years of trying to get the SEC to allow the launch of Bitcoin ETFs, VanEck will debut in a few days.
It will start trading as the third Bitcoin exchange-traded fund in the United States. The developers expect the VanEck ETF to have a 0.65% management fee, which caught the attention of large investors. That led the prices of those assets to skyrocket in a few hours.
Cryptocurrencies play a crucial role within the world economy. For that reason, a growing number of companies want to offer services with them, which has led to the emergence of ETFs. The Bank of Spain recently published information for the banks interested in operating with crypto assets.
By Alexander Salazar
