CoinTrust

Institutions are Moving Away from Bitcoin to Ethereum

According to a recent research from a crypto currency analytics company, institutional investors are abandoning Grayscale’s Bitcoin Trust (GBTC) in support of yet another cryptocurrencies trading vehicle.

Grayscale’s Ethereum Trust (ETHE) had higher daily trade volumes in September than GBTC for the foremost time in history, as per a CryptoCompare article.

“In September, Grayscale’s Ethereum Trust (ETHE) was by far the most transacted crypto currency product, with average daily volumes rising 29% to $250 million (42.4% market share), unseating Grayscale’s Bitcoin Trust (GBTC) for the initial time ever.”

According to the research, cumulative assets under management (AUM) in Bitcoin-based instruments dropped to fresh lows in September, while Ethereum’s market share soared as investors diversified their cryptocurrency holdings.

“AUM in Bitcoin-based instruments dropped 7.8% in September to $35.1 billion (67.9% of current total AUM — the lowest percentage in April 2021, when it stood at 78.3%). Ethereum-based products, on the contrary, achieved their greatest market share of AUM at 25.9%, after a 3.0% drop to $13.5 billion. This trend indicates that investors are looking for cryptocurrency substitutes to Bitcoin.”

Whilst Grayscale’s Bitcoin-based products experienced a decrease in AUM in September, CryptoCompare reports that average weekly net inflows went positive in September following a three-month drop.
“Average weekly net inflows averaged $72.8 million in September, reversing a three-month pattern of withdrawals i.e., -$59.9 million in June, -$12.1 million in July, and $0.6 million in August.”

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