October is historically a positive month for cryptocurrencies, often dubbed “Uptober” by crypto traders. The data from Coinglass reveals that Bitcoin has experienced only two declines in October over the past decade, with positive gains recorded in the last four Octobers. Similarly, Ethereum has displayed positive gains in October for the past four years, and in 2023, it’s already up by 3.7%, trailing slightly behind Bitcoin’s 5% monthly gain.
This recent surge in Bitcoin’s price is a welcome move for the cryptocurrency, which had been stuck trading around the $26,000 level since mid-August. September brought a 3.9% gain for Bitcoin, marking its first positive performance in the month in seven years.
The immediate cause of this jump in prices isn’t entirely clear, but it’s worth noting that the clearing of short positions in the Bitcoin futures market may have contributed to the rally. Data from Coinglass indicates that approximately $104 million worth of Bitcoin short positions were liquidated over the week ending on October 1, pushing the price higher. Another $40.5 million in Bitcoin short positions were liquidated in the past 24 hours as of Tuesday morning.
Ethereum Futures ETFs Make Their Debut
In parallel to Bitcoin’s price surge, Bitwise Asset Management launched trading for two Ethereum futures ETFs on Monday. These ETFs, known as the Bitwise Ethereum Strategy ETF (AETH) and Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP), are now trading on the Chicago Mercantile Exchange.
Bitwise CEO Hunter Horsley expressed enthusiasm for Ethereum’s growth, citing its billions in revenue, millions of users, and a diverse ecosystem of applications and developers. Major brands like Nike, Starbucks, Adidas, Pepsi, PayPal, and JPMorgan have all embraced Ethereum, further fueling its momentum.
ProShares and VanEck also joined the fray by launching Ethereum futures ETFs. The ProShares Ether Strategy ETF, ProShares Bitcoin & Ether Market Cap Weight Strategy ETF, and ProShares Bitcoin & Ether Equal Weight Strategy ETF will be listed on the NYSE Arca, while the VanEck Ethereum Strategy ETF is set to trade on the Cboe Exchange.
However, Valkyrie Digital Assets temporarily stepped back from its plan to purchase Ethereum futures for its merged Bitcoin and Ethereum futures ETFs. This decision was made pending official approval from the SEC, as Valkyrie prepares to launch the renamed Valkyrie Bitcoin and Ether Strategy ETF (BTF) on October 3, with regulatory clearance expected on that date.
In addition, Grayscale Investments has submitted an application to convert its Grayscale Ethereum Trust (ETHE) into a spot ETF, as announced by CEO Michael Sonnenshein.
Bitcoin and Ethereum Price Action
Bitcoin reached a peak of $28,564 before settling at $27,870 late on Monday. This remarkable surge represents a 68% gain in Bitcoin’s value since the beginning of the year. Ethereum, on the other hand, briefly touched $1,749, its highest level since late August, before retracing to $1,670. Ethereum has surged nearly 40% higher in 2023.
The Grayscale Ethereum Trust also saw some price volatility, with gains reaching 0.4% following a substantial 5.9% increase on Monday morning.
In the broader cryptocurrency landscape, Coinbase (COIN) experienced a 0.3% increase in its stock price on Monday, following a 3.1% gain in early trade. Bitcoin mining companies, Hut 8 Mining (HUT) and Riot Platforms (RIOT), saw increases of 2.6% and 5.9%, respectively, after significant morning jumps. Marathon Digital (MARA) rose by 0.4% after posting double-digit gains earlier in the day.
These developments reflect the ongoing dynamism and excitement in the cryptocurrency market during the month of October, a historically favorable period for digital assets.