Cryptocompare, the firm that provides institutional and retail investors with real-time and historical cryptocurrency data, has published the firm’s November 2021 Digital Asset Management Review. This report will cover crypto-exchange-traded products, (ETPs). Recent findings have shown that alternative crypto assets are outperforming Bitcoin ETPs.
Volumes of Ethereum-Based Investment Products Trade Increase
Cryptocompare releases a monthly research report on the crypto investment products landscape. The investment products are ETPs tethered to today’s top crypto assets globally such as Grayscale’s GBTC and ETHE funds. Cryptocompare’s Digital Asset Management Review November report explains that ETPs tied to ethereum (ETH), litecoin (LTC), and solana (SOL) saw better returns during a 30-day time frame ending on November 19.
“The majority of AUM for trust products continues to reside in Grayscale’s Bitcoin (GBTC – $38.1bn – down 10.1% since October) and Ethereum (ETHE – $12.9bn– up 3.6%) products,” Cryptocompare’s report discloses. “ETC Group’s BTCE product regained the position of highest AUM ETN/ETF product with a gain of 1.2% to $1.5bn. This was followed by Purpose’s Bitcoin ETF (BTCC) and 3iQ Coinshares’ Bitcoin ETF (BTCQ) which fell 6.5% and 10.1% to $1.4bn and $1.2bn respectively,” the Cryptocompare researchers add.
Aggregate of Crypto-Based ETP Daily Trade Volumes Slid by 13% — Litecoin and Solana ETPs Outperform Bitcoin Investment Products
Overall, the research shows that daily crypto-based ETP volumes dropped by 13% while popular ETH ETP volumes increased. “Average daily trading volumes across all digital asset investment product types fell by an average of 13% from October to $732mn/day,” the study highlights. Cryptocompare’s report notes that Bitcoin-based investment products “performed poorly,” while LTC and SOL-based ETPs did well. Grayscale’s basket fund which contains some of the largest market cap coins returned -15.5%, Cryptocompare detailed.
“BTC-based investment products generally saw negative returns in November, led by ETC Group’s BTCE product which returned -13.1%. Similarly, Grayscale’s GBTC trust returned -10.2%,” Cryptocompare’s November study explains. “The best performing investment product was Valour’s BTCZERO product, which returned -6.6%. On the other hand, alternative coins-based products saw positive returns throughout the month, led by 21Shares’ ASOL (Solana-based product) and Grayscale’s LTCN (Litecoin-based product), which returned 22.0% and 14.9% respectively,” Cryptocompare’s report concludes.
What do you think about the bitcoin investment products’ performances compared to alternative crypto asset ETP market performances? We’d love to hear your views on the subject.
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