Asset management and risk management are important components of any investment strategy, and the digital asset space is no exception. Given the volatility and complexity of the cryptocurrency market, investors must monitor their investments and carefully assess their risk exposure.
CryptoCompare, a leading encrypted data provider has release A monthly digital asset management review that provides an overview of the global digital asset investment product landscape.
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The report tracks the adoption of crypto products by analyzing asset management, trading volume, and price performance. The review gathers data from a variety of sources, including Financial Times, 21Shares, Coinshares, XBT Provider, Grayscale, OTC Markets, HaETF, Yahoo Finance, 3iQ, Purpose, VanEck, ByteTree, Nordic Growth Market, Bloomberg, and CryptoCompare.
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In February, digital asset investment continued its upward trend, and the total assets under management (AUM) of products hit a new high of US$28.3 billion.
This is a 5.25% increase from January and the third consecutive month that AUM has increased. The increase in AUM indicates bullish investor sentiment and growing demand for the cryptocurrency.
Monthly Assets Under Management – Total Offerings on Exchanges and OTC | Source: Cryptocurrency Comparison
In February, the AUM of Bitcoin and ETH products increased, of which BTC products increased by 6.06%, with a total AUM of US$20 billion, and ETH products increased by 1.72%, with a total AUM of US$6.8 billion. As a result, BTC and ETH products currently account for 70.5% and 24% of the total AUM market share, respectively.
Assets Under Management | Source: CryptoCompare
In February, CI Galaxy saw the highest increase in AUM, up 37.7% to $460 million. It was followed by 21Shares, which grew 33.4% to $1.38 billion. Despite these moves, Grayscale remains dominant, with total product AUM reaching $20.8 billion, up 3.02% quarter-on-quarter. XBT Provider ($1.54 billion) and 21Shares ($1.38 billion) followed Grayscale as the second and third largest players in the market.
Source: CryptoCompare
According to the latest report for February 2023, the total average daily trading volume of all digital asset investment products fell slightly by 9.39% to $73.3 million.
Compared to December 2022, the volume has increased by 21.5%. However, volume is still 80.1% lower than in February 2022, showing volatility in the market.
BTC-based products still dominate in terms of weekly net flows, with BTC-based products and Short BTC products recording positive flows of $5.3 million and $4.6 million, respectively.
Due to the need to raise capital, DCG decided to sell its position in Grayscale Trust Products. According to a Financial Times report cited in the comments, one of the most significant sales was about 25% of the Ethereum Trust (ETHE), at a price that was 50% below the price of the fund.
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