Institutional Shift? For the First Time Ever, Grayscale’s Top Crypto Investment Product Isn’t the Bitcoin Trust

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.

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