BackCrypto funds AUM surges 46% to all-time high of $74.7 billion: Report
The AUM included all-time highs for individual asset products such as $55.2 billion for bitcoin products (52.2% increase) and $15.9 billion for ethereum products (30.0% increase)
PremiumDigital asset investment products or crypto funds were in demand as assets under management grew across the board in October, with total AUM reaching $74.7 billion (till 21 October, surpassing the previous all-time high of $58.7 billion in March, according to a report by digital asset data provider CryptoCompare.
The AUM included all-time highs for individual asset products such as $55.2 billion for bitcoin products (52.2% increase) and $15.9 billion for ethereum products (30.0% increase).
In October, bitcoin and ethereum rose by 42.0% and 35.4%, respectively (as of 21 October) following anticipation for the launch of the first bitcoin exchange-traded fund (ETF) by ProShares on the 19 October.
“Inflation concerns also appeared to rise over the month, with the governor of the Bank of England stating that the central bank will have to act to control inflation. Similarly, the US September CPI report quoted inflation at 5.4%, a 30-year high," CryptoCompare wrote in a recent report.
For digital asset management products, this has meant a significant increase of 45.5% in total AUM, caused by a combination of rising prices and increased weekly inflows in October.
According to CryptoCompare, various individual companies’ AUM also reached new all-time highs withGrayscale, XBT Provider, and 21Shares products growing to $56.8 billion (42.3% increase), $5.5 billion (42.7% increase) and $2.3 billion (32.5% increase), respectively.
Average daily volumes also rose in October to $802 million (43.6% increase) as higher prices led to more volatility, creating a potentially more profitable market environment for cryptocurrency traders.
In terms of individual crypto assets, the report highlighted that after returning to net positive inflows in September, flows into bitcoin-backed digital asset products continued to rise in October, recording an average of $121 million per week so far this month.
“This included a $225 million inflow in the week to 11th October, the largest inflow since early May. Other asset-backed products experienced marginal inflows – with Solana and Ethereum products seeing average weekly inflows of $4.3 million and $1.9 million, respectively," the report said.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
