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.
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.
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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