Ethereum-based investment products increased by 2.36% to $6.81 billion in assets under management (AUM) throughout August, which outperformed Bitcoin-oriented products that saw a 7.16% drop off to $17.4 billion, as reported by Cointelegraph.
On the basis of information by Cointelegraph, figures contained in a new CryptoCompare report showed that Grayscale’s Bitcoin product experienced a 24.4% drop in volume, while Ethereum product GETH inctreased 23.2%. The report recommends that the Ethereum merge was the reason behind the change in trading volumes.
“Indeed, even at a granular level, no Bitcoin products covered in this report saw AUM or volume gains in the month of August. We could be seeing interest move away from Bitcoin in the short term, as Ethereum-based products hold the attention with the anticipated merge on the horizon,” the report stated.
On the basis of information by Cointelegraph, monthly AUM figures for digital asset investment products fell four percent overall, which was mainly attributed to six percent fall from Grayscale’s GBTC product, as it accounts for $13.4 billion of the total $25.8 billion of digital AUM (53.4%). Reportedly, largest inflows came from products under the “Other” umbrella, which represents non-Bitcoin and Ethereum products and witnessed a 12.3% increase to $1.13 billion over the first three weeks, as given in the report.
Moreover, Cointelegraph noted that despite the bear market, financial institutions have still unveiled cryptocurrency investment products, which are called as Exchange Traded Funds (ETFs), Exchange Traded Certificates (ETC), Exchange Traded Notes (ETN) and Trust products. The unveiling of the Bitcoin trust from reportedly the world’s largest asset manager came following its partnership with Coinbase to give its clients institutional trading services. BetShares unveiled Australia’s first metaverse-oriented ETF on the Australian Stock Exchange (ASE), along with new metaverse and non-fungible token (NFT) focused ETF launched by finance platform SoFi.
(With insights from Cointelegraph)
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