Digital asset management companies thrive in 2023 despite Bitcoin and Ethereum’s May downturn
CCData’s May Digital Asset Management Review found that Bitcoin continues to solidify its position as an attractive asset class for institutional investors as supply is limited and resists government control. I understand.
Financial Conduct Authority (FCA) accredited Benchmark Manager reports provide both institutional and retail investors with real-time and historical data on digital assets.
Bitcoin and Ethereum are tattered but resilient
Bitcoin- and Ethereum-based commodities experienced their first declines of the year, dropping 10.3% and 4.42%, with total assets under management dropping to $21.7 billion and $7.5 billion, respectively. As a result, Bitcoin’s market share dropped slightly to 70.9%, while Ethereum rose to 24.5%.
In addition, digital asset managers saw a significant year-to-date (YTD) increase in assets under management (AUM), despite the first total contraction in 2023. Standouts included CI Galaxy, ProShares, and ETC Group, all of which saw significant increases in AUM.
In May, the total average daily trading volume of digital asset investment products was on a downward trend, marking the second consecutive month of decline. However, the resilience is evident as total assets under management for digital asset investment products are still up 55.5% year-to-date, despite falling 8.92% to $30.6 billion in May.
Broader Market and Trusted Products
All categories of digital asset investment products such as ETCs, trust products, ETFs and ETNs fell as the broader digital asset market weathered a May slump. In particular, trust products, dominated by grayscale, fell 8.61% to a total of $23.9 billion.
Average daily trading volume for digital asset investment products fell 24.6% to $209 million in May, the second lowest record in 2023. Average daily trading volume for ETNs and ETFs fell 15.9% to $172 million, dominated by Bitcoin-based products. .
May was also a significant month for VanEck and CI Galaxy, with AUM increasing 2.25% to $334 million for the former and falling 3.45% to $523 million for the latter. Key market player Grayscale maintained its stronghold with total AUM of $23 billion, reflecting a notable year-to-date increase of 57.6%, despite an 8.66% decline in AUM from April to May. maintained.
Year-to-date numbers confirm a significant increase in AUM for digital asset management firms, despite the May slump. CI Galaxy emerged as the frontrunner, year-to-date boasting his AUM increase of 118%. ProShares and ETC Group followed, with year-to-date increases of 80.1% and 71.5%, respectively.
On the trust product side, Grayscale’s Bitcoin Trust (GBTC) and Ethereum Trust (ETHE) were up despite AUM declining by 9.93% and 4.67%, respectively, totaling $16.8 billion and $5.52 billion, respectively. ) remained in first place. In the ETN/ETF product, ProShares BITO maintained its pole position, while in the ETC space, CoinShares’ XBT provider accounted for the majority of all ETC assets under management.
