Crypto AUM fell 25pct in January to $43.9 billion

abdelaziz Fathi

Cryptocurrency asset management industry went through another fall in January, according to a new report by Cryptocompare.

CryptoCompare today published its monthly digital asset management review, which offers widely-quoted insights into the cryptocurrency investment industry as well as changes to AUM metrics that make up the data provider’s indices.

Key findings from the January review show that digital assets under management (AUM) fell by 25  percent compared to the previous month. In January, the monthly volume hit $43.9 billion relative to $58.6 billion in December. Average daily volumes also fell to an average of $481 million (down 14.5 percent), the lowest level since July 2021.

ETH-based products led a third consecutive month of sell-offs, the report notes. Total AUM for all ETH exchange and OTC-traded products continued to decline from the recent high it hit at $74.7 billion. The figure fell to $43.9 billion at the end of January, a loss of 25.1 percent from December alone.

Meanwhile, Bitcoin products AUM saw a decrease of 23.3 percent to $29.9 billion. Further, Ethereum and products backed by other crypto-assets saw larger declines of 29.2 percent to $11.0 billion, and 29.9 percent to $1.5 billion, respectively.

The third week of December was the first week since August where digital asset products saw outflows. This carried on into January, as the month averaged weekly outflows for the first time since August 2021.

Specifically, average weekly outflows hit $88 million with a record $207 million of outflows in the first week of January – the highest outflows since the first week of June ($238 million). Bitcoin products experienced the largest outflows with a weekly average of $49.3 million, followed by Ethereum products with an average of $28.2 million. Solana products saw the largest inflows with a weekly average of $2.4 million.

Trading volumes tumble

Average daily trading volume fell in line with AUM again in January, down 14.5 percent to $481 million. The largest decreases in individual product volumes come from VanEck’s VETH, and Grayscale’s ETHE Ethereum products, down 38.9 percent (to $3.91 million) and 34.8 percent (to $139 million).

Nevertheless, a handful of products saw increases in product volumes, the largest of which being 21Shares AETH, up 134.4 percent to $8.38 million per day. This was followed by increases in physically backed bitcoin products, CoinShares BITC and 21Shares ABTC – up 106.7 percent to $4.01 million, and 94.1 percent to $2.60 million respectively.

Earlier in November, CryptoCompare received approval from the Financial Conduct Authority in the UK to operate as a benchmark administrator. CryptoCompare’s FCA authorization allows service providers to create regulated financial products that are underpinned by its suite of digital asset indices.

 

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