Solana-based products lead with 74% AUM increase in October: CCData

October 6 marks a major breakthrough in the industry with the launch of the ETH Futures ETF, giving investors the opportunity to get into Ether futures. Bitcoin responded positively to the developments. Further gains were fueled by speculation that BlackRock would approve a spot BTC ETF in the United States.

As a result, total assets under management (AUM) for digital asset products increased by 6.74%, reaching $31.7 billion in October. This marks the first change since July 2023.

The narrowing grayscale decline, which hit a low of 12.6% on October 18, further exemplifies the shift, according to the latest report from crypto data provider CCData. A decrease in the difference between the market value of the trust and the Net Asset Value (NAV) increases the confidence in the approval of the Bitcoin ETF.

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SOL-based products saw a 74% increase in AUM

Despite his ties to FTX and ousted founder Sam Bankman-Fried, as well as his own stake that was terminated, Solana managed to recover this year. This has been evident in the ongoing flow over the past several weeks.

According to CCData, Solana-based products stood out among the competition and saw the highest AUM increase in the period, growing by 74.1% to $140 million in October.

Meanwhile, assets under management (AUM) of Bitcoin-based products rose by 11.1%, reaching $23.2 billion and commanding a market share of 73.3%. This represents an increase from 70.5% in September.

Ethereum-based products, however, declined despite the introduction of new ETFs. These products showed a collective decline of 5.45%, bringing their AUM down to $6.35 billion and their market share falling to 20.1%. This is down from 22.6% in September.

On the other hand, products based on baskets showed an increase of 2.10%, reached 1.19 billion dollars and controlled 3.75% of the market.

Meanwhile, ATOM-based products, which include 21Shares ATOM and CoinShares COMS, registered the second largest increase, increasing by 58.6% to $2.15 million.

In October, the average daily combined transaction volume of digital asset investment products saw a significant increase, rising 44.3% to reach $230 million. This increase highlighted the optimism among market participants regarding ETF approvals.

Notably, this increase marked the third largest monthly increase in volume, surpassing the months of January and March 2023.

Crypto-related stocks have made significant gains.

For the second month in a row, crypto-related stocks have seen a decline relative to Bitcoin, as enthusiasm surrounding the BTC ETF and October's 11.4% rise in the asset's value has remained mainstream.

Interestingly, COIN (Coinbase Global Inc), RIOT (Riot Platforms Inc) and GLXY (Galaxy Digital Holdings Ltd) all saw declines of 0.56%, 4.93% and 3.01% respectively.

The trend can be mainly attributed to the ongoing macroeconomic conditions, which showed a more “hawkish stance”, Ciddata noted. This economic shift is triggered by the impending recession and the Federal Reserve's inability to cut interest rates until at least May 2024.