In September, crypto markets continued to decline as the US Federal Reserve announced its decision to raise the interest rate by 75bps. This resulted in a collapse in the price of cryptocurrencies, with Bitcoin and Ethereum down 4.77% and 15.9% in September (as of September 28).
The crypto markets are still in the red
In September, the exogenous macroeconomic effects, which are heavily affecting the European and American financial markets, with widespread declines on all lists, also weighed heavily on the cryptocurrency markets, with Bitcoin and Ethereum both retracing below levels. key support at $ 19,000 and $ 1,300.
These are the data that can be deduced from the new report of the CryptoCompare company just released that refer to the crypto markets of the month of September:
As central governments around the world announced more conservative measures to curb inflation, Exchange Traded
Products (ETPs) followed the downward trend of the rest of the markets, with trading volumes falling below $ 100 million for the first time since September 2020. Average daily volumes fell 79.9% from high of this year recorded in January 2022 ".
Short Bitcoin Products, whose performance inversely replicates the daily performance of the Bitcoin futures index, recorded an increase in the AUM (Asset under Management) in September. The ProShares Short Bitcoin Strategy ETF (BITI) saw its AUM rise a sizable 43.9% to $ 98.8 million , while 21Shares Short Bitcoin ETP (SBTC) saw a 25.4% increase in AUM at $ 18.9 million. Both Short Bitcoin products recorded their all-time high in this month of September.
"As macro conditions worsen and the price of major cryptocurrencies continues their downward trend,
investors will likely move to short bitcoin products to profit or hedge their cryptocurrency equity stake. "
21Shares SBTC, according to the data that emerged from the report, appears to have been the only publicly traded product that recorded positive returns at 30 days, up 5%.
Short products on Ethereum
But it is on Ethereum-related products that the bearish pressure of investors is most focused according to the report. In fact, Ethereum-based digital asset products have seen one of their toughest months of the year, with all products down more than 10% in the past 30 days , with Grayscale ETHE, VanEck's VETH product, 3IQ's QETH product to lead the decline in monthly returns with respectively negative performances of 21.4%, 14.2% and 13.7%.
The fall coincided precisely at the time of the launch of the long-awaited Merge update with the transition of Ethereum from Proof of Work to Proof of Stake consensus.
As CryptoCompare pointed out at the beginning of the month, when Merge had not yet entered into operation, there was a growth in the stock, driven by speculation. But as often happens in these cases, the climb "drugged" by rumors and indiscretions, was followed by a sudden descent, as soon as the update became active.
As for data on funds under management, or AUM, the decline in Bitcoin-based digital asset products was 10.7% to $ 15.6 billion, with market share dropping to 69 . , 4%.
Meanwhile, the AUM of Ethereum-based digital asset products fell 19.3%, to about $ 5.49 billion, 24.5% of the total AUM. The AUM of products based on products other than BTC and Ethereum fell, representing 8.48%, to 1.03 billion dollars and 343 million dollars.
Grayscale is king
products Grayscale continue to account for the vast majority of AUM at $ 16.6 billion (74.0% of total), followed by XBT Provider products at $ 1.24 billion (5.54% of total) and 21Shares to 942 million dollars (4.20% of the total).
Regarding product type, the AUM in fiduciary products fell 12.5% to $ 17.3 billion (76.9% of the total AUM). The AUM represented by ETFs also fell in September, down 21.1%.
Digital asset ETFs now account for 10.0% of the market share, continuing to decline from its high of 11.5% in June.
Finally, also on the data relating to fiduciary products in digital assets, in which Bitcoin Grayscale (GBTC) is the lion's share in terms of market share, with 69.3% of the market, a drop of over 10% was recorded. $ 12 billion in assets under management. Meanwhile, Grayscale ETHE's AUM, which accounts for 22.9% of the market share, fell 17.6% to $ 3.95 billion.
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