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Bitcoin ETP Volumes Decline in September

Bitcoin’s bearishness has led investors to exit certain crypto derivatives products leading to trading volumes decreasing. CryptoCompare reported volumes for cryptocurrency-based exchange-traded-products (ETPs) declined to but a fraction of their August totals. 

Average daily volumes fell 75% from $186.5 million in mid-August to a mere $48 million by the middle of September. The slump took place in both Europe and North America. August was a record month for crypto derivatives.

Volumes at Grayscale’s Bitcoin Trust, a market leader, fell to $40 million a day. Ethereum and Ethereum Classic products fell 65% of their value since June.

Crypto derivatives follow the price performance of a particular digital asset––mostly Bitcoin and some Ethereum––in a product traded on regulated stock exchanges. Bitcoin decreased in price from $12,000 to $10,000, but has since recovered to trade around $10,613. 

The Fear and Greed Index, a consolidated sentiment tool for digital assets, sits at 46 presently, demonstrating a mildly bearish sentiment. “ETP investors generally invest long-term, and therefore the recent drop in price combined with a generally bearish market has likely encouraged more cautious trading activity,” Tsavliris said.