Bitcoin vs Ethereum: which crypto leads the race for investment products

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Overall, August contributed to the recovery of most of the major cryptocurrencies in the market. The 30-day returns for Bitcoin and Ethereum, for example, reflected positive values, 22.35% and 35.95% respectively, at the time of writing.

Given the high risk associated with directly managing these crypto assets, institutional investors are looking for other less risky crypto-investment products such as ETNs, ETFs and ETC. In fact, the crypto industry has grown at a much faster rate compared to other financial products that expose investors to traditional assets.

A close look at the statistics reveals that Bitcoin and Ethereum investment products remain the most popular choices for investors. However, which of the two crypto is actually leading the race?

The “AUM” standoff

According to data from CryptoCompare, the total assets under management of all types of investment products increased by 57.3% over the past month. Ethereum-based products grew the fastest (72.8%), reaching $ 13.8 billion, and reached their annual peak for market share in this space. Yet Bitcoin remains the most dominant crypto, as its AUM reflected a cumulative total of over $ 38.1 billion.

Among all the major institutions, Grayscale Trusts continue to hold the lion’s share of the aforementioned assets. Data from Skew further highlighted that the value of ETHE’s assets under management grew at a much faster rate (42.8%) compared to that of GBTC (19.2%) over the past month.

Source: bias

The battle for “volume”

Daily aggregate product volumes saw the largest month-on-month increase since May (up 46.6%). The push was largely driven by Ethereum products. For example, daily ETHE volumes peaked at 105.9%, while GBTC volumes increased only 17.4% during the same time window. In fact, the CryptoCompare report mentions,

“Other Bitcoin products saw their volumes decline: ETC Group’s BTCE and provider XBT’s Bitcoin Tracker Euro (BTC / EURO) fell (by) 14.8% and 23.9% respectively.”

Well, the volumes take into account both the inputs and the outputs. Therefore, at this point, it should be noted that digital asset investment products saw weekly net outflows of $ 22.5 million through the third week of August. The same has been largely due to the Bitcoin and Ethereum product releases. Interestingly, alongside multi-assets, single-asset products involving XRP and Cardano (ADA) saw net inflows.

Source: CryptoCompare report

ETC, ETN and ETF

Among the major Exchange Traded Notes and Exchange Traded Funds, ETC Group’s BTCE product was the most traded product, followed by VanEck’s Bitcoin product (VBTC). Notably, 21Shares’ Ethereum ETN (AETH) saw the largest percentage increase in trading volume (up 137.4% to $ 2.5 million) in the past month.

When it comes to exchange-traded certificates, the Ethereum Tracker One (ETH / SEK) product from provider XBT became the most-traded ETC product in August. This was followed by XBT Provider’s Ether Tracker Euro (ETH / EUR) product.

Source: CryptoCompare report

Even though Bitcoin continues to dominate the investment commodity space at this time, one cannot ignore the pace of Ethereum’s progress. Obviously, the latter category has performed particularly well compared to the former over the past month. So yes, ETH is gradually stealing the thunder of “institutional interest” from BTC.

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