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.
“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.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/solarseven