Ethereum-related products led the July rebound

CryptoCompare’s latest report on the crypto market in July shows that it was Ethereum and its related products that led the market rebound.

Ethereum ecosystem drives the entire market

During the month of July, which saw a sharp rebound in the cryptocurrency market after the sharp declines in May and June, it was Ethereum and its related products that led the rebound as the real protagonist. At least this is the understanding of CryptoCompare experts.  

Ethereum products posted gains ranging from 25.9% to 37.8%, while ETH itself posted 30-day returns of 13.6 % (as of July 26). Ether Tracker Euro XBT Provider posted a 30-day return of 37.8%, earning it the overall best product of the month. 

CryptoCompare’s lengthy report reads:

“Ethereum’s AUM rose 44.6% to $6.57bn compared to that of BTC which rose 16.9% to $18.6bn”.

Bitcoin’s AUM, reading the data that appeared in the report, would have increased by 16.9% to $18.6 billion, but its market share declined, currently coming in at 69.9% of the total AUM of the digital asset market, down from the 73.6% recorded in June.

July saw a continuation of the negative trend regarding digital asset trading volumes. In July they would stand at $122 million, down 44.6%. This is the lowest average daily aggregate volume recorded since September 2020. 

Further market analysis developed in CryptoCompare’s report

These figures, according to CryptoCompare’s experts, are also affected by the SEC’s persistent refusal to allow ETFs in Bitcoin, which would definitely have an effect on the overall market prices because it would allow the entry of large institutional investors. Among the latest refusals made by the SEC is that of the ETF proposed by Grayscale Investment, which on 30 June decided to report the SEC to the authorities for this very reason. 

According to the report’s data, Grayscale’s products continue to account for the vast majority of AUM at $19.8 billion (74.4% of the total), followed by those of XBT Provider at $1.53 billion (5.77 % of the total) and 21Shares at $993 million (3.73% of the total).

In terms of product type, AUM in trust products, in which the Grayscale market largely dominates, increased by 18.7%, to $20.6 billion (79.3% of total AUM). 

AUM represented by ETFs grew marginally in July, up 0.64% to $1.93 billion, with 7.44% market share.

In July, the ProShares BITO product was the most traded product among the ETN/ETF category, with $608 million. This was followed by ETC Group’s BTCE product and Purpose’s BTCC product, with the former up 39.9% to $476 million and the latter down 12.2% to $373 million.