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.” Cryptocurrency is a young asset class that has developed a reputation for price volatility however there are ETFs that could help mitigate risk those investors seeking crypto exposure.
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 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 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 October 3, 2023)
Bitcoin hit its highest level since mid-August to kick off October and is now up ~65% year to date. Some market observers are optimistic that the digital currency can continue to build on the recent, modest gains.
XRP’s price also jumped to its highest level since August and is currently up ~55% year to date.
Ether also saw significant gains this week with its price jumping above $1,700 for the first time in over a month. ETH is now up ~39% 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.
ETFs associated with cryptocurrencies include: ProShares Bitcoin Strategy ETF (BITO ) and ProShares Short Bitcoin Strategy ETF (BITI ).
For more news, information, and analysis, visit the Crypto Channel.
This article was originally written by Jill Mislinski. Starting in January 2023, AP Charts pages will be maintained by Jennifer Nash at VettaFi | Advisor Perspectives
