Ethereum Drives Modest Crypto ETP Recovery in July
Crypto ETP investors were largely absent from July's market rally, according to Fineqia International Inc (CSE:FNQ) analysis.
Total assets under management across global digital asset ETPs increased by only 1.8% to $108.7 billion in July, a gain driven primarily by rising token prices rather than new investor demand, senior associate Matteo Greco said.
The discrepancy between the growth of ETP AUM and the broader market capitalization suggests that higher underlying asset prices were partly offset by net redemptions from the products, Greco noted. The report pointed out that Bitcoin ETPs ended July with $88.6 billion in AUM, up just 0.4% from June, despite a 7.4% price increase for BTC to $62,896.
Ethereum ETPs were an exception, leading the monthly recovery with AUM increasing by 16.8% to $12.0 billion as ETH's price rose 18.7% to $1,863.