In the research report published by broker Canaccord on Wednesday, it was discussed in detail how the digital assets sector regained momentum and entered the growth phase after the crisis following the bankruptcy of FTX.

FTX was considered a major player in the crypto world, and this exchange founded by Sam Bankman-Fried had gained a great reputation before its collapse. However, FTX later filed for Chapter 11 bankruptcy.

This bankruptcy led to a widespread crisis of confidence in the crypto market, and the digital assets industry entered a difficult period known as the “crypto winter” and bear market. During this period, many crypto assets experienced large losses in value and investors suffered serious losses.

However, according to the report, after the collapse of FTX, the digital assets industry has entered the phase of recovery and growth. Analysts led by Joseph Vafi describe this period as “growth and business model/total addressable market (TAM) expansion from the post-FTX consolidation/recovery phase.” In other words, the sector has emerged from the uncertainties created by the previous crisis and entered a new growth phase.

Spot exchange-traded funds (ETFs), which were launched in the USA at the beginning of this year, are considered an important part of this recovery. The approval of Bitcoin (BTC) and ether (ETH) spot ETFs is seen as a sign of recovery in the sector.

These ETFs have enabled digital assets to be accepted by broader institutional investors, and institutional portfolios are expected to include digital assets more. Spot ether ETFs began trading on July 23, nearly six months after bitcoin ETFs launched.

This development enabled digital assets to attract the attention of more institutional investors and contributed to increased investor confidence.

The report also lauds the evolution of Michael Saylor-run MicroStrategy (MSTR) as a Bitcoin development company. The company’s shares have gained approximately 325% over the past year, representing a much higher performance than BTC’s 148% gain.

This successful performance of MicroStrategy is seen as a factor supporting the institutional acceptance of digital assets and the increase in investments.

However, a report published last week by Citi, one of the Wall Street giants, stated that the crypto market has been struggling since the launch of spot ether ETFs in the US. Citi’s report emphasized that this situation creates uncertainties in the market and causes the value of crypto assets to fluctuate.

The digital assets industry has experienced a significant recovery following the FTX crash and has returned to growth. Increased corporate investments and the launch of new financial products contribute to the re-strengthening of the sector.

However, it is stated that the market still faces some challenges and this may affect the performance of crypto assets. This gives important clues about the direction in which the future development of digital assets will proceed.