CryptoCompare has just released its latest Digital Asset Management Review, a monthly report that focuses on key developments in global digital asset ETPs and tracks adoption of these products by analysing assets under management, trading volumes, and price performance.
The report found that, despite Bitcoin's new all-time high of $58,348 on the 21st of February, average ETP volumes decreased 37.8% to $936mn. Meanwhile, aggregate AUM across all ETPs increased 50% to a record $43.9bn.
Here are the key takeaways:
- AUM across all ETPs increased 50% to $43.9bn.
- Aggregate ETP volumes dipped, while products from ETC Group and VanEck showed high volume growth.
- Bitwise’s BITW and Grayscale’s ETCG showed the highest returns.
- Market premiums for Bitcoin products by Grayscale and 3iQ dropped.
ETP News
Jan 25th 2021
Bitcoin Return to $40,000 in Doubt as Flows to Key Fund Slow
Jan 26th 2021
Investment flows into cryptocurrency funds and products hit a record $1.31 billion
Feb 2nd 2021
21Shares Launches the World’s First Polkadot ETP
Feb 16th 2021
After VanEck, NYDIG Files Application for Bitcoin ETF
Feb 18th 2021
Purpose Bitcoin ETF (ticker BTCC) Debuts in Toronto
Feb 22nd 2021
ETC Group’s bitcoin ETP reaches $1bn AUM
Feb 22nd 2021
The Bitcoin Fund by 3iQ Completes Private Placements
Feb 24th 2021
CoinShares Launches Physically Backed Ethereum ETP with $75M in AUM
AUM – Assets Under Management
Since mid-January 2021, total AUM across all ETPs have increased 50% to $43.9bn (as of 23rd Feb).
ETP Trading Volumes
Aggregate daily ETP volumes across all product types have decreased by an average of 37.8% in February 2021 compared to January 2021. Average daily volumes now stand at $936mn compared to $1.51bn in the previous month.
ETP Price Performance
The best performing Bitcoin product by market price over the last 30 days was Bitwise’s Listed Trust Product (BITW/USD) with 156% 30-day returns. This exceeds CryptoCompare’s CCCAGG BTC/USD index performance (64%) as well as MVIS’s MVDA index performance (48.9%). Another top performing product, among the most liquid exchange traded products by volume, includes Grayscale’s Ethereum Classic Trust product (ETCG) with 105.5% 30-day returns.
Grayscale’s Ethereum Trust product (ETHE) underperformed relative to other top ETPs with 34.8% 30-day returns. This is almost 10% lower compared to CryptoCompare’s ETH/USD CCCAGG Index performance (44%).
Among the top 15 ETP markets by volume, 5 underperformed relative to the MVDA index. These markets include: Grayscale’s ETHE trust product, XBT Provider’s ETH markets (ETH/EUR and ETH/SEK), and 3iQ’s Bitcoin Fund markets (QBTC-U/USD and QBTC/CAD).
The MVDA index is a market cap-weighted index that tracks the performance of a basket of the 100 largest digital assets. The index serves as a benchmark and universe for the other MVIS CryptoCompare Digital Assets Indices.
Market Premiums – Grayscale and 3iQ Listed Trust Products
Since January, market premiums for both Grayscale’s and 3iQ’s Listed Bitcoin products have dropped dramatically with 3iQ’s QBTC-U Bitcoin Fund trading at a discount of 11.1% relative to its NAV on the 19th of Feb. At the beginning of January, BTC products by Grayscale and 3iQ traded at 17% and 16% premiums respectively. As of Feb 24th, premiums were 3.0% and -7.2% respectively.