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August 27, 2021

Ethereum Investment Products Record Massive Surge in August: Report

By Daily Hodl Staff

Blockchain insights platform CryptoCompare is outlining what it sees as increased interest in Ethereum-based investment products.

According to the firm’s new report, assets under management (AUM) of all investment products surged to $54.8 billion over the last 30 days, marking a growth of 57.3% despite an average weekly outflow of $22.5 million in the first three weeks of August.

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The report says that investments in ETH-based products increased to $13.8 billion, representing a growth rate of 72.8%, the fastest among crypto investment products. ETH-based products also gained a market share of 25.2%, the highest so far this year, according to the report.

“Ether, and ETH-based products, have gained significant momentum following the protocol’s recent London Hard Fork, as well as the growth in Non-Fungible Token (NFT) markets.”

CryptoCompare also credits Ethereum-tracking products for driving the daily trading volumes of the investment product market, which the firm says rose by 46.6% to $544 million in August, the largest month-on-month increase since May.

“This increase was largely driven by Ethereum tracking products, most notably Grayscale’s ETHE trust, with average daily volumes increasing 105.9% to $193.3mn.”

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The AUM growth across digital asset investment products came as the prices of cryptocurrencies rebounded over the last month, with Bitcoin (BTC) and Ethereum rising by 49.7% and 57.4% respectively, according to the report.

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