In September, the price of Bitcoin and Ethereum fell 9.1% and 14.7%, respectively (data up to 24th September), following regulatory concerns from the U.S. Securities and Exchange Commission and a declaration from the People’s Bank of China on the 24th stating that all crypto-related transactions are illegal.

These announcements caused a decrease in AUM for digital asset investment products, although a rise in volumes in September coupled with positive weekly inflows for the first time in 3 months suggests there could be upside going into the last quarter of 2021.

September Highlights

• Bitcoin AUM fell 7.8% in September to $35.1bn - its lowest share since April (67.9% of current total AUM).
• Ethereum-based products reached their highest market share of AUM at 25.9% - movement that suggests investors are seeking alternatives to Bitcoin for cryptocurrency exposure.
• Grayscale’s Ethereum Trust (ETHE) was the most traded digital asset product in September - with average daily volumes increasing 29.0% to $250mn (42.4% market share) - dethroning Grayscale’s Bitcoin Trust (GBTC) for the first time ever.
• ETNs were the only product type to experience an increase in AUM in September, growing 7.2% to $3.7bn.