Ethereum investment products saw an increase of 2.36% to $6.81 Billion in assets under management (AUM), during August. This was higher than Bitcoin products, which saw a drop of 7.16% to $17.4 Billion.
These figures were included in a new CryptoCompare report.
This was also reflected by the trading volumes of Bitcoin (BTC), and Ethereum (ETH), products. Grayscale’s most prominent Bitcoin product, GBTC, saw a 24.4% decrease in volume while GETH, its Ethereum product, actually saw a 23.2% increase. According to CryptoCompare, the Ethereum Merge, which was highly anticipated by many, caused the increase in trading volumes.
Even more detailed, however, this report does not include any Bitcoin products that saw volume or AUM gains during August. In the near term, we could see interest shift away from Bitcoin as Ethereum-based products continue to hold the attention due to the highly-anticipated merger.
Monthly AUM for digital asset investments products fell 4% overall. This was largely due to Grayscale’s GBTC product which accounts for $13.4 Billion of total $25.8 Billion digital assets under management (53.4%).
According to the report, the largest inflows were from products that fell under the “Other,” which includes non-Bitcoin or Ethereum products. They saw an increase of 12.3% to $1.13 trillion over the first three week.
Throughout the bear market, monthly AUM for digital asset investments products has steadily fallen. Source: Crypto Compare.
A number of high-respected financial institutions launched crypto investment products in August despite the bear market. These products include Exchange Traded Funds, Exchange Traded Certificates ETC, Exchange Traded Notes ETN and Trust products.
BlackRock’s private Bitcoin Trust was one of the most prominent. This move prompted a “here is Wall Street” response by Barry Silbert, former Grayscale CEO. After its partnership with Coinbase, the largest asset manager in the world, the Bitcoin Trust was launched. It provides institutional trading services to its clients.
Charles Schwab was also a financial institution that made a splash this month. It launched its “Schwab Crypto Thematic ETF” tickered STCE on New York Stock Exchange. This ETF provides exposure to various mining and staking firms, as well as several blockchain-based applications.
Similar: Institutions flock to Ethereum for 7 consecutive weeks as Merge closes: Report
BetaShares has launched Australia’s first Metaverse-focused ETF (ASX) on the Australian Stock Exchange (ASX). SoFi also launched a new Metaverse and NFT-focused ETF (SOFI).
Eileen Wilson –Technology and Energy
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