Report: Bitcoin (BTC) investment products declined in November
Bitcoin-based investment products have returned negative gains in the month of November while other digital assets have been mostly positive.
In its latest Digital Asset Management Review, CryptoCompare has reported that in November, alternative crypto-asset investment products, such as Ethereum, Litecoin and Solana have outshined those of Bitcoin ETPs, as they raked in better gains than the flagship digital asset.
Bitcoin-based products perform poorly in November
The report observes that the AUM of Grayscale’s Bitcoin (GBTC), which owns many of the trusts, plummeted by 10.1% to $38.1 billion, however, alternative asset Ethereum (ETH) rose by 3.6% to $12.9 billion.
According to the report:
“ETC Group’s BTCE product regained the position of highest AUM ETN/ETF product with a gain of 1.2% to $1.5bn. This was followed by Purpose’s Bitcoin ETF (BTCC) and 3iQ Coinshares’ Bitcoin ETF (BTCQ) which fell 6.5% and 10.1% to $1.4bn and $1.2bn respectively.”
It was also revealed that the average daily trading volumes of the entire crypto-based ETPs have fallen by 13% to $732 million in November, however, popular ETH-based exchange-traded products rallied to new heights though it was still below the highs seen during the beginning of the year.
Interestingly, Litecoin and Solana-based exchange-traded products performed well, while Grayscale’s crypto basket fund, on the contrary, only returned a negative gain of -15.5%.
The CryptoCompare report continued that several BTC-based investment products suffered major losses. For example, ETC Group’s BTCE product was one of the biggest losers as it was down by -13%, followed by Grayscale’s GBTC trust, with -10.1%. However, among the BTC-based investment products, only Valour’s BTCZERO performed fairly better, losing just -6.6%.
You may recall that the value of Bitcoin plummeted to below the $60k mark during the month. On the other hand, altcoin-based products were favored in the month, as the product of 21Shares’ ASOL (Solana-based product) and Grayscale’s LTCN (Litecoin-based product) returned 22.0% and 14.9% gains respectively.
This report corroborates a number of previous CoinShares reports where the crypto analytics site reported that other digital assets like Solana and Cardano have seen more institutional investors recently than Bitcoin.