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. The report covers crypto exchange-traded products (ETPs), and recent findings show alternative crypto asset investment products are outperforming Bitcoin ETPs.
Increased trading volumes of Ethereum-based investment products
Each month, Cryptocompare publishes a research report that covers the landscape of cryptocurrency investment products. Investment products are ETPs linked to today’s major crypto assets around the world, such as Grayscale’s GBTC and ETHE funds. Cryptocompare’s Digital Asset Management Review November Report Says ETPs Linked to Ethereum (ETH), Litecoin (LTC), and Solana (SOL) have performed better over a period of time. 30 days ending 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.
Crypto-Based ETP Daily Trading Volume Aggregate Decreased 13% – Litecoin and Solana ETPs Outperform Bitcoin Investment Products
Research highlights that overall, daily crypto-based ETP volumes have decreased by 13%, but popular ETH-based ETP volume has increased. “Average daily transaction volumes on all types of digital asset investment products fell an average of 13% between October and $ 732 million per day,” the study said. The Cryptocompare report notes that Bitcoin-based investment products “performed poorly,” while LTC and SOL-based ETPs performed well. Grayscale’s basket, which contains some of the biggest 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.
