This weekly update tracks some of the largest cryptocurrencies by market share: bitcoin and ether. We’ve also included XRP, as it was one of the largest cryptocurrencies when this article began. According to Wikipedia, a cryptocurrency is “a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.”
Bitcoin was the world’s first cryptocurrency and decentralized digital currency. The first bitcoin transaction occurred in early 2009 and has since grown worldwide. Ether is another cryptocurrency run on the Ethereum blockchain platform and has the second largest market share, despite being the newest of the three with its launch in July 2015. XRP, which is owned by Ripple and launched in 2012, was one of the larger cryptocurrencies for some time until new coins joined the market. We’ve included it here for reference.
The third-largest market share of cryptocurrency, tether, is a token “backed by actual assets” which includes one US dollar, one euro, or loans to affiliate companies and is controlled by the owners of Bitfinex. It’s a controversial cryptocurrency due to its alleged manipulation of crypto pricing. It is called a “stable coin” because it was designed to always be worth $1.00. We do not chart it because its price rarely changes.
For a better understanding of crypto market cycles, read more here.
The Latest Crypto Data (through August 29, 2023)
Bitcoin’s price soared over 6% yesterday after the U.S. Court of Appeals ruled in favor of Grayscale to convert its flagship fund to a bitcoin ETF (read more). BTC is now up ~66% year to date.
XRP’s price also jumped yesterday, ending the streak of 5 straight weekly declines. XRP is currently up ~59% year to date.
Ether’s price also made a significant jump yesterday in response to the ruling, climbing almost 5% from the day before. ETH is currently up ~44% year-to-date.
An index has been created in order to chart these three cryptocurrencies together, considering their significantly different pricing histories. Ether tops the chart, i.e., the price of an ether has changed the most out of all three cryptocurrencies.
Crypto ETFs have garnered a lot of attention as of late. In June, a handful of asset managers such as Blackrock, WisdomTree, Invesco, and Fidelity filed for Bitcoin spot ETFs. More recently, there have been a rush to file for ether future ETFs. If approved, experts are expecting a big Bitcoin rally to occur.
ETFs associated with cryptocurrencies include: ProShares Bitcoin Strategy ETF (BITO) and ProShares Short Bitcoin Strategy ETF (BITI).
by Jennifer Nash of VettaFi | Advisor Perspectives, 8/30/23
Originally published on Advisor Perspectives.
For more news, information, and analysis, visit the Crypto Channel.