Bitcoin ETP volumes grew in October amidst institutional demand

Crypto exchange-traded products, institutional offerings that track the price of crypto assets like Bitcoin and Ethereum, saw their volumes increase by over 2.2% this month, as per a report by CryptoCompare.

The data comes as institutional Bitcoin adoption was bolstered by last month's $375 million BTC purchase by software firm MicroStrategy and Square's $50 million Bitcoin bet this month.

CryptoCompare noted the top ETP products by market cap included Grayscale's Bitcoin trust and Ethereum trust products, the ETC Group's BTCE product, and Wisdom Tree's BTCW product at $34.5 million.

The report said the ETPs with the highest returns over the last 30 days were ETC Group's Bitcoin ETP at 7.7% and BTCW by WisdomTree at 7.3%. These products outperformed the spot market which experienced returns of 6.6% compared to 30 days prior, it added.

"Grayscale's products generally underperformed compared to the market," the report said.

In terms of market cap, Grayscale's GBTC Trust Product represented the highest market cap of all ETP products at $5.8 billion.

"Excluding Grayscale products, the largest ETP by market cap is now ETC Group's BTCE product with a market cap of $60.1mn, followed by Wisdom Tree's BTCW product at $34.5mn.".

Crypto ETP trading activity for non-otc products has generally declined throughout the last 30 days.

Excluding OTC products, 3IQ's QBTC product which trades on the Toronto Stock Exchange has represented the majority of the volume in October.

ETCGroup's Bitcoin ETP also represented a significant proportion of the volume, trading on Deutsche Boerse XETRA, the report concluded.