Report: Bitcoin (BTC) investment products declined in November

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.