A new study from a digital asset analytics firm is revealing that institutional investors are moving away from Grayscale’s Bitcoin Trust (GBTC) in favor of another crypto asset trading product.
According to a CryptoCompare report, Grayscale’s Ethereum Trust (ETHE) witnessed more daily trading volumes in September than GBTC for the first time in history.
[adinserter block="1"]“Grayscale’s Ethereum Trust (ETHE) was the most traded digital asset product in September – with average daily volumes increasing 29.0% to $250 million (42.4% market share) – dethroning Grayscale’s Bitcoin Trust (GBTC) for the first time ever.”
The study also highlights that the total assets under management (AUM) in Bitcoin-based products fell to new lows in September while Ethereum’s market share peaked as investors diversify their crypto portfolio.
“AUM in Bitcoin-based products fell 7.8% in September to $35.1 billion (67.9% of current total AUM – the lowest share this year since April at 78.3%). On the other hand, Ethereum-based products reached their highest market share of AUM at 25.9%, following a 3.0% decrease to $13.5 billion.
This movement suggests that investors are seeking alternatives to Bitcoin for cryptocurrency exposure.”
Although Grayscale’s Bitcoin-based products saw a decline in terms of AUM last month, CryptoCompare notes that average weekly net inflows turned positive last month after going through a three-month downtrend.
“Average weekly net inflows were positive in September as inflows averaged $72.8 million, breaking a three-month trend of outflows (-$59.9 million in June, -$12.1 million in July, and $0.6 million in August).”
You can download the full report here.
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