Market Analysis Report (31 Aug 2022)

According to the August 2022 issue of CryptoCompare’s Digital Asset Management Review, Ethereum investment products outpaced Bitcoin products in August, with Ether-based products increasing by 2.36% to $6.81bn AUM in August, whilst Bitcoin products declined 7.16% to $17.4bn AUM. 

Notably, Grayscale’s Bitcoin Trust (GBTC) experienced lesser volume than its Ethereum counterpart, the first this has happened since the fund’s inception. GBTC experienced a 24.4% drop in average daily volume, while the Ether trust saw its volume rise 23.2%.

Since the end of July 2022, the total AUM across all digital asset investment products have fallen, something which can largely be attributed to the decline in Grayscale’s GBTC product, which accounts for $13.4bn (53.4%) of total crypto AUM.

The shift in narrative and momentum gain for Ether-based products can largely be attributed to the upcoming Merge upgrade for Ethereum, which is currently the leading narrative within the digital asset ecosystem.

In August, Ether-based products also outpaced Bitcoin in terms of weekly flows, with the second largest digital asset by market capitalization recording the largest average weekly inflows with $6.4m, while Bitcoin products averaged outflows of $14.9m.