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A monthly report covering the most innovative institutional products in the industry

For the past few years, CryptoCompare has been at the forefront of digital asset index product development with our excellent partners MV Index Solutions, and recently the Singapore Stock Exchange.

The growth in institutional demand for digital asset exposure has to be met with accessible, simple and cost-effective products. CryptoCompare's mission is to help our clients bring regulated digital asset products such as ETPs and funds to market. Our efforts have led us to become the leading data provider and calculation agent, serving customers such as 3iQ, 21Shares and FICAS.
 
To share this journey in digital asset product innovation with you, we decided to launch a new research series: The Digital Asset Management Review, a monthly report covering the most innovative institutional products in the industry.
 
Hope you enjoy it.
 
Quynh Tran-Thanh
Chief Product Officer


Key Takeaways
 
1. Aggregate ETP volumes have declined 74% over the last month – Grayscale Trust products still dominate trading activity with approximately $40mn/day but took the largest hit in volumes (-78%) across OTC Markets.
 
2. Grayscale’s Ethereum and Ethereum Classic Trust products have lost 65% of their value since June 1st as investor interest declines.

3. Above market performance was experienced by several top ETPs - 21 Shares Active Bitcoin ETP (ABTC), 21 Shares Active Ethereum ETP (AETH) and ETC Group’s ETP (BTCE).
ETP News
 
25th August - CoinShares
CoinShares crypto-asset ETPs surpass $1bn AUM. The suite, which is offered through CoinShares’ ETP platform, XBT Provider, comprises eight single-asset ETPs providing exposure to bitcoin, ethereum, litecoin, and ripple in either Swedish krona or euro trading lines.
 
31st August – 21 Shares
The world’s first centrally cleared short bitcoin ETP (by 21Shares) was admitted to the regulated market of Deutsche Boerse XETRA.
 
9th September – ETC Group
ETC Group has confirmed the signing of Authorised Participants to support the liquidity of BTCetc Bitcoin Exchange Traded Crypto (BTCE).XTX Markets, Flow Traders and Jane Street are actively making markets on XETRA to bring liquidity, tight trading spreads and execution efficiencies for BTCE
 
21st September – 21 Shares
21Shares AG, the world’s leading issuer of crypto ETPs, is bolstering its offering to Swedish and Scandinavian investors via Nordnet Bank’s digital platform for savings and investments.

ETP Trading Volumes

ETP volumes have dwindled 74% over the last month from $186.5mn in mid-August to an average of $48mn in mid-September.

Grayscale’s Bitcoin Trust product represented the vast majority of ETP volume and hence accounts for most of the decrease in trading activity throughout the month. The top 3 products (GBTC, ETHE, and ETCG) traded a combined $180mn/day in mid-August and now trade just over $40mn in daily volume. 

Crypto ETP trading activity has generally declined throughout the last 30 days. Excluding OTC products, ETCGroup’s Bitcoin ETP (BTCE) represented the majority of the volume, trading on Deutsche Boerse XETRA. Other ETPs by volume include 3IQ’s QBTC product which trades on the Toronto Stock Exchange and BTCW by WisdomTree which trades on Six Swiss Exchange.

ETP Price Performance

Grayscale’s Bitcoin and Ethereum Trust products represented the largest average daily trading volumes over the last 30 days at $49mn and $7.4mn respectively. These two products which are available on OTC Markets (OTCQX U.S.) also experienced relatively large 30-day losses in value among the top-traded ETPs at 20.4% and 43.4% respectively.
Grayscale’s Ethereum and Ethereum Classic Trust products (ETH and ETC) have lost approximately 65% of their value since June 1st as the firm fails to maintain significant interest from investors.
After Grayscale's trust products, the Bitcoin ETP by ETCGroup (BTCE), which trades on Deutsche Boerse XETRA, saw average trading volumes of $864k, and experienced loss in value of 8.9% over the past 30 days.
Among the top 10 products by volume, the 21Shares Bitcoin and Ethereum Active Products (ABTC and AETH) traded an average of $158k and $45.7k respectively with only 8.8% and 7.2% drops in value over the month – relatively low compared to other products.
CryptoCompare Index Products
 
We offer custom and white label index solutions, developed using CryptoCompare data and administered by MVIS. If you want to learn how our indices can help you build new investment products, please don’t hesitate to reach out to our team.

CryptoCompare Aggregate Index Constituent Review
CryptoCompare's world-class index calculation and maintenance services are backed by our due diligence to maintain data integrity for the CCCAGG indices.

CCCAGG is the CryptoCompare Aggregate Index methodology calculated for over 10,000 markets. Each month the exchange constituents are reviewed against strict eligibility criteria. Find the full methodology and the results of the September review here.

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