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NEW DELHI: Investors rotated holdings to Bitcoin alternatives as assets under management (AUM) of bitcoin-based crypto funds fell 9.5% to $48.7 billion in November, the largest month-on-month pullback since July, according to a report by digital asset data provider CryptoCompare.

This comes in a month where bitcoin has fallen 4.6% to $58,508 (as of 22 November.)

On the other hand, Ethereum and other crypto products saw their AUM rise 5.4% to $16.6 billion and 10.4% to $2.6 billion, respectively. For overall crypto funds or digital asset management products, this resulted in a marginal monthly fall in AUM from $74.7 billion or -5.5% to $70.0 billion.

The world’s biggest digital asset manager Grayscale’s products represented the vast majority of AUM at $53.0 billion (76.8% of total) followed by those of XBT Provider ($5.0 billion, 7.2% of total) and 21Shares ($2.5 billion, 3.6% of total).

Further, average daily volumes of crypto funds also fell 13% to an average of $732 million, which remains significantly below the all-time high seen in January of $1.51 billion. On the other hand, inflows into investment products were positive, with bitcoin-based products leading the way amassing a weekly average of $94.4 million, showed CryptoCompare report.

US-based Grayscale’s Bitcoin Trust product (GBTC), the largest BTC-based product, lost a significant market share of trust product volume in November at 51% (down from 63.1%) after a month where average daily volumes fell 26.1% to $289 million. In contrast, the average daily volume for Grayscale’s ETHE, the largest ETH-based investment product by volume, increased 8.2% to $239 million.

Bitcoin trusts hold digital currency, allowing investors to trade shares through brokerage or retirement accounts, rather than cryptocurrency exchanges.

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