Crypto Investment Products’ Asset Under Management Rose Nearly 60% Year-to-Date: Report

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A recently published report by CCData has revealed that cryptocurrency investment products experienced a fifth consecutive month of growth in assets under management (AUM), with the total AUM rising by 6.94% to reach $35.6 billion in April. Year-to-date, they have seen their AUM rise by 59.9%.

The rise underlines the renewed interest in digital assets in the wake of traditional finance failures and market turbulence. Bitcoin ($BTC) and Ethereum ($ETH)-based products experienced increases of 6.34% and 8.72%, respectively, resulting in a total AUM of $24.2 billion for BTC-based products and $7.85 billion for ETH-based products.

According to CCData’s latest Digital Asset Management Review report, the growth in ETH-based products followed the successful implementation of the Shapella upgrade on the network, which made it possible for investors to withdraw staked ETH.

Source: CCData

Although the average daily aggregate product volumes across all digital asset investment products declined by 27.2% to $277 million in April, the report notes that this figure remains elevated compared to average trading volumes recorded in 2022.

Ledger

Net flows for BTC-based products reversed their trend, recording a positive net flow of $30.78 million after significant outflows in March.

Despite the growth in AUM for ETH-based products following the Shapella Upgrade, BTC-based products continue to dominate the digital asset market. These products increased their market share from 69.9% in January 2023 to 72.0% in April, while ETH-based products remained relatively stable, with only a slight decrease from 24.8% to 23.4%.

The report also highlighted that short Bitcoin-based products recorded their highest weekly outflows in 2023, which could be attributed to the upward momentum of BTC and the significant price increase that occurred during April 2023.

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Featured Image via Pixabay



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