Uptober: BTC, ETFs, and ATHs

Key Takeaways

• Bitcoin eclipses prior all-time high and tests $67,000, completing the comeback from a 55% drawdown April through July. 
  

• ProShare’s Bitcoin Strategy ETF ($BITO) was a huge success, garnering $570 million in asset inflows in its debut, and breaking the record for the fastest ETF to achieve $1 billion in assets on just its second day of trading.

• Open interest and funding rates increase, but the current Bitcoin leverage ratio and put/call ratio point toward a more sustainable market structure when compared with the last bull run.
  
• Positive long-term holder trends continue to support the rally, while lack of short-term investor participation suggests it is still early innings.
  
• Bitcoin continues to dominate, but we expect capital rotations into Ethereum and other altcoins as the bull market progresses. 
  
• Bottom Line: Given the current momentum and market structure, we remain buyers of Bitcoin and Ethereum into any near-term volatility.

---

Bitcoin Completes the ComebackIn crypto, fortune favors the patient and the data-driven. Despite weathering a 55% mid-cycle drawdown from April through July of this year, Bitcoin maintained overwhelmingly bullish underlying trends that we have repeatedly highlighted throughout our analyses. We have watched as the “smart money” on-chain cont...