Total exchange traded products (ETP) trading volume dropped significantly in September, according to a recent report by CryptoCompare, a digital asset data provider.
Daily crypto-ETP volumes declined nearly 74%, dropping from $ 186.5 million, which was changed in mid-August, to an average of $ 48 million in mid-September.
Grayscale size is a big hit
The Grayscales Bitcoin Trust represents a huge volume of ETP trading activity and has thus been the most successful in terms of trading volume.
Three major cryptocurrency products, Grayscale, Grayscale Bitcoin Trust (GBTC), Grayscale Ethereum Trust (ETHE), and Grayscale Ethereum Classic Trust (ETCG) lost 77% of their total trading volume, up from $ 180 million per day in mid-August to nearly 40. million dollars.
Total Assets Under Management (AUM) for grayscale has also declined since mid-August, but not as much. Grayscale’s assets under management fell 3.3% from $ 5.9 billion to $ 5.7 billion in the past 30 days.
Bitcoin price movement further alienates long-term investors
According to Konstantin Tsafleris, head of research at CryptoCompare, the decline in the volume of these machines for investing in cryptocurrencies is largely due to the recent price changes for Bitcoin and other cryptocurrencies. He told Cointelegraph:
The BTC price fell from $ 12,000 to $ 10,000 in early September. Since then, markets have generally been bearish, with some positive swings throughout the month. ETP investors tend to invest in the long term, so the recent fall in prices, coupled with the overall bear market, was a signal for more cautious trading behavior. ”
While the grayscale showed the largest decline in trading volume, it looks like the decline in the institutional size of the ETP cryptocurrencies has affected most of the market, not just the shades of gray. Tsafleris told Cointelegraph:
– On other ETPs, in general, there was also a decrease in volumes. However, Grayscale’s products are the most well-known, and they make up the bulk of ETP’s trading activity today – even after the slump. They manage over $ 4.7 billion in assets for their Bitcoin Trust product, with 84% of new investments in the second quarter coming from institutional hedge fund investors. As a result of their position in the US market, as well as their clients, their business activities were more sensitive to the factors mentioned above.