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- August has supported the recovery of most of the market’s main cryptocurrencies, on the whole. Bitcoin and Ethereum, for example, had positive 30-day returns of 22.35 percent and 35.95 percent, respectively
- According to CryptoCompare, overall AUM increased by 57.3 percent over the last month across all investment product types
- ETC Group’s BTCE product was the most traded among major Exchange Traded Notes and Exchange Traded Funds, followed by VanEck’s Bitcoin product (VBTC)
August has supported the recovery of most of the market’s main cryptocurrencies, on the whole. Bitcoin and Ethereum, for example, had positive 30-day returns of 22.35 percent and 35.95 percent, respectively. Because HODLing these crypto-assets directly carries a significant level of risk, institutional investors have been looking for less risky crypto-investment vehicles such as ETNs, ETFs, and ETCs. In fact, when compared to other financial products that expose investors to traditional assets, the crypto business has grown at a significantly quicker rate. According to statistics, Bitcoin and Ethereum investment products continue to be the most popular choices for investors. Which of the two cryptos, though, is genuinely leading the race?
According to CryptoCompare, overall AUM increased by 57.3 percent over the last month across all investment product types. Ethereum-based products rose at the quickest rate (72.8 percent), reaching $13.8 billion and reaching a yearly high in terms of market share. Despite this, Bitcoin remains the most popular cryptocurrency, with an AUM of over $38.1 billion. Grayscale’s trusts continue to hold the majority of the aforementioned assets among all large institutions. According to Skew’s data, the value of ETHE’s AUM grew at a far quicker rate (42.8 percent) than that of GBTC (19.2 percent) over the past month.
Since May, daily aggregate product volumes have increased by the most in a single month (up by 46.6 percent ). Ethereum-based products were mostly responsible for the uptick. For example, ETHE’s daily volumes increased by 105.9%, whereas GBTC’s only increased by 17.4% during the same time period. In fact, according to CryptoCompare’s research, another Bitcoin product, ETC Group’s BTCE, and XBT Provider’s Bitcoin Tracker Euro, both saw their volumes fall by 14.8 percent and 23.9 percent, respectively. Volumes, on the other hand, account for both inflows and outflows. As a result, it’s worth noting that until the third week of August, digital asset investment products saw weekly net outflows of $22.5 million. Outflows in Bitcoin and Ethereum products were a major contributor. Surprisingly, single-asset products such as XRP and Cardano had net inflows alongside multi-assets.
ETC Group’s BTCE product was the most traded among major Exchange Traded Notes and Exchange Traded Funds, followed by VanEck’s Bitcoin product (VBTC). Over the past month, 21Shares’ Ethereum ETN (AETH) saw the greatest percentage gain in trading volume (up 137.4 percent to $2.5 million). In terms of Exchange Traded Certificates, XBT Provider’s Ethereum Tracker One product became the most popular ETC in August. The Ether Tracker Euro (ETH/EUR) solution from XBT Provider came next. Even if Bitcoin continues to dominate the financial product industry at the present, the rate at which Ethereum is progressing cannot be overlooked. When compared to the former, the latter category has clearly outperformed the former during the last month. Yes, ETH is slowly but steadily taking BTC’s institutional-interest thunder.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
