The digital assets sector has shown resilience, bouncing back after the fallout from the FTX exchange collapse in November 2022, according to a research report released by Canaccord on Wednesday.

What Happened: In the report, analysts led by Joseph Vafi highlighted a significant shift in the digital assets industry over the past year.

"In the last year, we believe the broader digital assets industry has transitioned from a post-FTX consolidation/recovery phase back to one focused on growth and business model/total addressable market (TAM) expansion," the analysts stated.

Crypto exchange FTX founded by Sam Bankman-Fried, spiraled into Chapter 11 bankruptcy following a CoinDesk report that exposed significant weaknesses in its balance sheet.

This event was a key driver of the prolonged crypto winter and the ensuing bear market.

A major catalyst for this resurgence has been the introduction of spot exchange-traded funds (ETFs) in the United States earlier this year.

The approval and launch of both Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) spot ETFs have played a crucial role in driving broader institutional adoption of digital assets.

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Ethereum spot ETFs began trading in the U.S. on July 23, following in the footsteps of their Bitcoin counterparts, which had been launched six months earlier.

These financial products have opened new avenues for institutional investors, potentially increasing the role of digital assets in diversified portfolios.

The report also commended Michael Saylor's MicroStrategy (NASDAQ:MSTR) for its ongoing transformation into a Bitcoin-centric development company.

MicroStrategy's stock has surged approximately 325% over the past year, far surpassing the performance of most asset classes, including Bitcoin itself, which has seen a 148% increase.

However, not all has been smooth sailing. Last week, Citi highlighted the challenges the crypto market has faced since the debut of Ethereum spot ETFs in the U.S., suggesting that the market has yet to fully capitalize on these new products.

What's Next: As the digital assets industry looks toward continued growth, discussions on the future of digital finance will be central to the upcoming Benzinga's Future of Digital Assets event on Nov. 19.

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