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(Kitco News) - October has been a strong month for the cryptocurrency ecosystem as the total assets under management (AUM) for digital products traded over the counter or on exchanges increased by 6.74% to $31.7 billion, the first monthly increase since July.

According to the monthly Digital Asset Management Review from CCData, the newfound enthusiasm for cryptos followed the launch of six Ether (ETH) futures exchange-traded funds (ETFs) combined with Bitcoin’s (BTC) price surging back above $30,000, which “have ignited investor sentiment and raised hopes for the imminent approval of the first spot Bitcoin ETF.”

“The bullish trend in Bitcoin's price is noteworthy,” they said. “After the initial rumors and subsequent price decline, Bitcoin has rebounded, experiencing a 28.3% increase from the beginning of the month” and now trades near support at $34,000.

BTC hourly price chart. Source: CCData

Breaking the AUM down by specific assets, October saw Bitcoin-based products increase by 11.1% to $23.2 billion, which represents a 73.3% market share, up from 70.5% in September.

Monthly AUM aggregate by asset. Source: CCData

The value held in Ether-based products declined despite the newly launched ETFs, falling by 5.45% to $6.35 billion, representing a market share of 20.1%, down from 22.6% in September. “Basket-based products also saw an increase of 2.10% to $1.19 billion capturing 3.75% of the market,” the report said.

Solana (SOL) products recorded the largest increase in AUM, rising 74.1% to $140 million. Cosmos (ATOM) based products came in second with an increase of 58.6% to $2.15 million.

Monthly AUM increase by asset. Source: CCData

Geographically speaking, Canada contributed the most to the increase in AUM, “mainly due to the performance of products such as Evolve EBIT, Purpose Invest BTCC, Purpose Invest BTCY, and 3iQ CoinShares BTCQ, which saw respective increases of 21.5%, 18.5%, 16.6%, and 16.6%,” CCData said. The country now accounts for 6.39% of the digital asset product market.

Germany experienced the second-largest increase in AUM, growing by 16% to reach $698 million, led by ETC Group’s BTCE, which increased 21% to $552 million.

The United States continues to dominate on the total AUM front, with U.S.-listed products increasing 3.22% in October to reach $24.5 billion, representing a 77.3% market share.

AUM by country. Source: CCData

While many crypto-related stocks have seen increases in dollar terms, they declined against Bitcoin for the second month in a row, “amid the increased sentiment around Bitcoin ETF and the notable increase in BTC price in October (11.4% till the 22nd ),” the report said. Coinbase Global (COIN), Rito Platforms (RIOT), and Galaxy Digital Holdings (GLXY) saw declines of 0.56%, 4.93%, and 3.01%, respectively.

“The recent downturn in stocks related to digital assets can be primarily attributed to the prevailing macroeconomic conditions, which have exhibited a hawkish stance in recent times,” CCData said. “This shift in economic sentiment has been driven by the looming concern of an impending recession and the reluctance of the Fed to lower interest rates until at least May 2024, as indicated by the probabilities derived from the CME FedWatch meetings.”

October also saw a boost in trading volumes, with the average daily aggregate volumes of digital asset investment products increasing by 44.3% to $230 million. “The increase reflected the positive sentiment of market participants surrounding ETF approvals,” the report said. “The increase was the third-highest monthly increase for volumes following January and March 2023.”

Average daily aggregate product volumes. Source: CCData

Aside from flows into digital asset investment products, other signs are emerging that interest in cryptocurrency is on the rise.

According to a report from Cryptogambling.tv, Google searches for “buy Bitcoin” in the U.K. increased by 826% over the past week.

Global search terms related to purchasing Bitcoin. Source: Google Trends

Google Trends data also shows that searches from users in the United States for “Should I buy Bitcoin now?” increased by more than 250%, while more niche searches, including “Can I buy Bitcoin on Fidelity?” increased by over 3,100% in the past week.

Inquiries into whether it “is a good time to buy Bitcoin?” increased 110%, while searches for “BlackRock Bitcoin ETF” spiked 250%, suggesting that the prospect of a spot BTC ETF launching soon is one of the driving forces behind the increase in interest and momentum.