According to the latest CryptoCompare report, Ethereum continues its bull run, outperforming the market in July and August.
Ethereum-based products benefit from the rise
Ethereum-based products led the rebound in July and continued to outperform in August. AUM (Assets Under Management) for Bitcoin based products fell 7.16% at $17.4 billion, while Ethereum-based products were showing gains of 2.36% to $6.81 billion.
In fact, even at a more granular level, no bitcoin product covered in this report recorded gains in AUM or volume in August.
Here are some of the findings from CryptoCompare’s latest cryptocurrency market report just released, in which the experts write:
“We may see interest shift away from Bitcoin in the near term as Ethereum-based products gain attention with the highly anticipated merger on the horizon.”
Following the many collapses that have occurred in recent months, Earth with its stablecoin UST in May, Capital of the Three Arrows in June, and Celsius in July traders may be trying now more diversification of their cryptocurrency portfolios.
At least that’s what report data shows, as sub-manager investments in non-Ethereum and Bitcoin-related products saw the largest AUM gains, up 12.3% to $1.13 billion.
For the first time since December 2021, Grayscale’s Bitcoin Trust (GBTC) product lost its position as the most traded product. The fund’s average daily volume was $42.3 million (-24.4%).
Grayscale’s Ethereum fund took the top spot with an average daily volume of $48.7 million (+23.2%).
AUM Performance Report Highlights
According to the data that has emerged, it appears that traders are maintaining a bearish stance on Bitcoin. All Bitcoin-based trust products saw their average daily volumes decline in August, unlike most Ethereum-based products.
The report reads:
“In August, the bearish sentiment towards Bitcoin can be seen most clearly by looking at the premium or discount history of ProShares long (BITO) and short (BITI) strategy ETFs. An ETF can trade with a premium or a discount in times of high volatility, forcing the underlying net asset value (NAV) per share to differ from the transaction price.
Since the end of July 2022, the total AUM of all digital asset investment products has decreased by 4% to $25.8 billion. In August, Bitcoin’s AUM fell by 7.16% to $17.4 billion, therefore its market share also fell to 67.6% of total AUM from 76.9% in August. July. EthereumAssets under management, on the other hand, rose 2.36% to $6.81 billion. Ethereum-related products now account for 26.5% of total AUM, its the largest market share since the beginning of the year.
Average daily cumulative revenue volumes across all digital asset investment products declined an average of 1.01% to $131 million from July to August.