A new analysis shows that while ETH products increase in August, BTC products decrease. Assets under management (AUM) for Ethereum investment products increased by 2.36 percent in August, exceeding AUM for Bitcoin investment products, which fell by 7.16 percent, to $17.4 billion.
According to recent data published by CryptoCompare, the market share of ETH items increased in August, while the market share of BTC products decreased.
Grayscale’s most notable Bitcoin product, GBTC, had a 24.4% drop in volume, while its Ethereum product, GETH, actually rose 23.2%, reflecting this trend in trading volumes. CryptoCompare attributes the change in trade volumes to the much anticipated Ethereum Merge.
Indeed, even at a finer granularity, no Bitcoin products covered in this research showed AUM or volume improvements in the month of August. With the much-anticipated merging on the horizon, Bitcoin’s market share may begin to decline in the near future as emphasis shifts to goods built on Ethereum.
Grayscale’s GBTC product managed $13.4 billion of the total $25.8 billion in digital assets (or 53.4% of the total), despite the overall fall in AUM for digital asset investment products of 4% month over month.
There was a 12.3% increase to $1.13 billion in the first three weeks for products categorized as “Other,” which includes items other than Bitcoin and Ethereum.
Although the cryptocurrency market was in a bearish trend in August, a number of reputable financial institutions released cryptocurrency investment products. Exchange Traded Funds, Certificates, Notes, and Trusts are all examples of such instruments.
Former Grayscale CEO Barry Silbert famously said, “here comes Wall Street,” in response to BlackRock’s private Bitcoin Trust. The Bitcoin Trust was introduced by the largest asset management firm in the world after it partnered with Coinbase to offer institutional trading services to their clients.
This month also saw Charles Schwab, another major financial player, launch its own exchange-traded fund (ETF) focused on cryptocurrencies and blockchain technology (the “Schwab Crypto Thematic ETF”) on the New York Stock Exchange (ticker symbol: STCE).
On the Australian Stock Exchange (ASX), BetaShares introduced SoFi’s new Metaverse and nonfungible token (NFT) oriented ETF.