Digital asset investment product landscape in sharp rebound

Rick Steves

Total AUM across all digital asset investment products have increased 57.3% to $54.8 billion since July 2021, with average daily aggregate product volumes rising 46.6% to $544 million.

bitcoin

CryptoCompare has provided an in-depth look at the key developments in the global digital asset investment product landscape.

The firm’s Digital Asset Management Review in August points to the price rebound over the last 30 days. Bitcoin and Ethereum rose 49.7% and 57.4% respectively (data up to 23 August).

The move was triggered by the implementation of the Ethereum London Hard Fork on 5 August, according to CryptoCompare, which found average daily trading volumes increasing by 46.6% across all exchanges and OTC-traded investment product markets.

Total AUM across all digital asset investment products have increased 57.3% to $54.8 billion since July 2021, with average daily aggregate product volumes rising 46.6% to $544 million.

Grayscale’s ETHE trust product saw its average daily volume increase 105.9% to $193.3 million and its Digital Large Cap product (GDLC) also increased 117.4% in July to $6.0 million. Bitcoin’s AUM increased 51.9% to $38.1 billion, but Ethereum’s AUM rose by 72.8% to $13.8 billion.

Average daily volumes now stand at $544 million after an increase of 46.6% from July to August. AVD for GBTC and Grayscale’s ETHE stood at $240 million (up 17.4%) and $193.3 million (up 105.9%) respectively.

ETNs and ETFs saw large increases of 91.4% and 79.1% respectively, to $3.4bn and $2.9bn of AUM. As a result, these products saw their market share increase to 6.3% and 5.3% respectively.

Both BTC-based and ETH-based products experienced significant gains over the last 30 days, ranging from 36% to 67% for ETH products and 28% to 57% for BTC products.

“Grayscale’s GDLC basket product experienced the highest positive returns of 108% over the same period amongst the largest products by volume, while the company’s Litecoin and Bitcoin Cash based products (LTCN and BCHG) experienced losses of 60.1% and 44.6% respectively”, said the report.

“The MVDA index experienced 50% returns. The MVDA index is a market cap-weighted index that tracks the performance of a basket of the 100 largest digital assets. The index serves as a benchmark and universe for the other MVIS CryptoCompare Digital Assets Indices”.

Crypto Compare has recently ranked the leading exchanges in the space in its Exchange Benchmark. According to the ranking, US exchanges retain the top spots, with Gemini ranked first. Gemini is followed by Coinbase (2), Kraken (3), itBit (4), and Bitstamp (5).

CryptoCompare found that 38% of exchanges interact with high-risk entities for more than 25% of transactions, according to CipherTrace’s Interaction Risk data, and 4% of exchanges have been hacked in the last year. In addition, only 15% of exchanges state that they hold more than 95% of crypto in cold wallets.

 

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