Bitcoin Assets Under Management Records Steepest Decline Since July
According to a research by digital asset data source CryptoCompare, investors shifted their holdings to Bitcoin alternatives as assets under management (AUM) of Bitcoin-based crypto funds plummeted 9.5 percent to $48.7 billion in November, the greatest month-on-month drop since July. This comes at a time when Bitcoin has dropped 7.6 percent to $53,540 in the last month (as of 22 November).
Ethereum and other crypto goods, on the other hand, saw their aggregate market capitalization (AUM) increase by 5.4 percent to $16.6 billion and 10.4 percent to $2.6 billion, respectively. This led in a slight monthly decline in AUM for crypto funds or digital asset management products, which fell from $74.7 billion (-5.5 percent) to $70.0 billion (-5.5 percent) overall.
Products from Grayscale, the world’s largest digital asset management, constituted the great majority of AUM at $53.0 billion (76.8 percent of total), followed by those from XBT Provider ($5.0 billion, or 7.2 percent of total) and 21Shares ($2.5 billion, or 3.6 percent of total).
Furthermore, the average daily volume of crypto money decreased by 13% to an average of $732 million, which remains substantially below the all-time high of $1.51 billion reached in January. In contrast, according to the CryptoCompare research, inflows into investment products were positive, with Bitcoin-based products leading the way, accruing an average weekly amount of $94.4 million, according to the report.
Grayscale’s Bitcoin Trust product (GBTC), the largest Bitcoin-based product in the world, saw its market share of trust product volume fall to 51 percent in November (from 63.1 percent in October), following a month in which average daily volumes fell by 26.1 percent to $289 million. Grayscale is based in the United States.
In contrast, the average daily volume for Grayscale’s ETHE, the biggest ETH-based investment product by volume, grew 8.2 percent to $239 million, representing an increase of 8.2 percent over the previous month. Bitcoin trusts retain digital cash, enabling investors to swap shares via brokerage or retirement accounts rather than on cryptocurrency exchanges, rather than on cryptocurrency exchanges.