Jun 01, 2023 12:25
The total assets under management (AUM) for crypto investment products declined for
the first time this year during this month (May), shedding 8.92% to reach $30.6 billion. On the contrary,
investment surged by over 55.5% on a year-to-date (YTD) basis.
These are
according to new data by digital asset data provider, CCData
previously known as CryptoCompare. CCData is also a benchmark administrator
authorized by the UK Financial Conduct Authority.
First Drop
in Crypto Investment AUM
According
to CCData, the AUM for Bitcoin and Ether-based products went down for the
first time this month, falling by 10.3% and 4.42%to $21.7 billion and $7.50 billion, respectively. As a
result of the decrease, the share of Bitcoin in the crypto-based product market
shrank to 70.9%, dropping from 72% in April. On the contrary, Ether’s market share rose slightly to 24.5%, up from 23.4% in the prior
month.
In line with the monthly drop in AUM, the average daily aggregate volumes of crypto investment
products also went down
for the second consecutive month. The volumes shrank by 24.6% to $209 million.
“This
decline followed a period of relative stability in the market, characterised by
digital assets like Bitcoin trading within a narrow range,” CCData explained.
“As a result, the digital asset industry witnessed its second lowest volume of
2023, with volumes only higher than those re-recorded in January.”
‘Ongoing
Growth amid Challenging Market Conditions’
However,
despite recording the first monthly drop in 2023, the market’s YTD
growth suggests “resilience and ongoing growth amidst
challenging market conditions,” CCData said.
The growth
is also a testament
that the industry is seeing overall expansionwith “positive momentum
and investor interest surrounding digital asset management,” the crypto data
provider added.
In terms of
performance by companies in the market, investment management firm VanEck pulled the highest increase in AUM during the month, followed by
rival CI Galaxy. The former’s AUM rose by 2.25% to
$334 million while the latter’s declined by 3.45%
to $523 million.
However, on
a YTD basis, GI Galaxy is the frontrunner, with total assets under its management
doubling by 118%. This was followed by ProShares and ETC Group with 80.1% and
71.5% increases in AUM, respectively.
Furthermore,
while Grayscale saw its AUM retreat by 8.66% to $23 billion in May, the digital
asset management firm remains the biggest player in the crypto products market.
Also, when compared YTD, the company’s AUM jumped by 57.6% during this month.
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This article was written by Solomon Oladipupo at www.financemagnates.com.
World Crypto Global
