Report Summary: CryptoCompare
In expectation of a more dovish Federal Reserve, the cryptocurrency markets recovered in October after falling for two straight months. On October 25th, Bitcoin and Ethereum were up 3.38% and 9.90%, respectively. Deposit this recovery; October 2022 had one of the lowest daily trade volumes. The average daily volumes have dropped below $100mn for the second time since September 2020.
- This month, the average daily trading volume for institutional digital asset products fell 34.1% to $61.3m, the lowest level ever recorded.
- The average daily volumes for almost all the items included in this research experienced a significant reduction, ranging from -24.3% to -77.5%.
- The volume of trades for Purpose’s ETF products increased.
- The average weekly net flows increased from October 25th.
- In October, the total AUM across all digital asset investment products rose by 1.76% to $22.9 billion.
- The ProShares BITO product, which had an AUM of $615mn in September, continued to have the highest ETN/ETF product AUM.
In-Depth Report Details
After two straight months of fall, the cryptocurrency markets bounced back in October in anticipation of a more dovish Federal Reserve. On October 25th, Bitcoin and Ethereum were up 3.38% and 9.90%, respectively. This change also affects the market’s other factors but not trading volume. Despite the price rise, the average daily trading volume saw the lowest level in October.
The average daily trading volume of digital asset products decreased by 34.1% to $61.3mn in October, the lowest level ever recorded. Additionally, except for a slight increase of 0.39% in May, average daily aggregate product volumes across all digital asset investment products decreased 34.1% to $61.3mn in October.
Moreover, it continued a negative trend in volumes seen since November 2021. Since September 2020, average daily volumes have gone below $100 million for the second consecutive month.
It’s interesting to note that trading volume for Purpose’s ETF products spiked, rising by 298% and 172%, respectively, for the company’s Bitcoin ETF (BTCC) and Ether ETF (ETHH). It portrays a gloomy picture for institutional solutions based on cryptocurrencies since the macroeconomic environment is still fraught with uncertainties.
Moreover, with an average daily volume of $28.6 million (down 19.5%) in October, Grayscale’s Bitcoin trust product (GBTC) maintained its leadership position as the most actively traded Trust Product. Following closely behind was Grayscale’s Ethereum offering (ETHE), which saw an average daily volume drop by 50.0% to $15.5 million.
Other significant trust products, including 3iQ’s Bitcoin product (QBTC), had average daily volumes drop by 13.7% to 416k, while its Ethereum product (QETH) saw average daily volumes drop by 45.9% to $320k. With a loss of 77.5% to $301k, the Grayscale ETCG product had the most significant dropout of all the items.
AUM – Assets Under Management
As of October 25th, the total AUM for all digital asset investment products climbed by 1.76% to $22.9 billion. Although it is still significantly lower than it was in March when the market peaked, AUM has increased for the first time since July of this year.
Additionally, AUM for cryptocurrency assets based on Bitcoin increased by 2.55% to $16 billion, accounting for 69.6% of the market. In contrast, Ethereum-based crypto assets’ AUM increased by 3.35% to $5.7 billion, accounting for 24.8% of all AUM.
In October, weekly net flows for products based on Bitcoin saw inflows averaging $8.37mn. However, Ethereum-related items had the second-largest negative net flow of $2.87 million. The highest outflows are recorded by short Bitcoin-based instruments, averaging $5.03 million. In addition, the average inflow into multi-asset based products was $430k, and the average outflow into other cryptocurrencies was $330kk.
CryptoCompare, a global source of cryptocurrency market data that was established in 2014, gives institutional and individual investors access to real-time, accurate market and price data on more than 5,300 coins and 240,000+ currency pairings.
It offers a thorough and detailed insight into the market spanning trading, derivatives, order book, historical, social, and blockchain data by compiling and analyzing tick data from internationally renowned exchanges and smoothly integrating numerous datasets.