Asset administration and danger administration are vital parts of any funding technique, and the digital asset house is not any exception. With the volatility and complexity of the crypto market, it’s important for traders to watch their investments and assess their danger publicity rigorously.
CryptoCompare, a number one digital asset knowledge supplier, has launched its month-to-month Digital Asset Administration Evaluate, which offers an outline of the worldwide digital asset funding product panorama.
Methodology
The report tracks the adoption of digital asset merchandise by analyzing belongings underneath administration, buying and selling volumes, and worth efficiency. The overview drew knowledge from numerous sources, together with Monetary Instances, 21Shares, Coinshares, XBT Supplier, Grayscale, OTC Markets, HanETF, Yahoo Finance, 3iQ, Objective, VanEck, ByteTree, Nordic Development Market, Bloomberg, and CryptoCompare.
Key Findings
Digital asset investments continued their upward pattern in February, with the full belongings underneath administration (AUM) for digital asset funding merchandise reaching a brand new excessive of $28.3 billion.
This represents a 5.25% enhance from January, the third consecutive month-to-month enhance in AUM. The AUM surge indicators traders’ bullish sentiment and a rising urge for food for digital belongings.
Bitcoin and Ethereum-based merchandise skilled elevated belongings underneath administration (AUM) in February. BTC-based merchandise noticed an increase of 6.06%, bringing the full AUM to $20.0 billion, whereas ETH-based merchandise noticed a 1.72% enhance, bringing the full AUM to $6.80 billion. Because of this, BTC and ETH merchandise now account for 70.5% and 24.0% of the full AUM market share, respectively.
Throughout February, CI Galaxy had the very best enhance in belongings underneath administration (AUM), with an increase of 37.7% to $460 million. Following carefully was 21Shares, which noticed a 33.4% enhance to $1.38 billion. Regardless of these beneficial properties, Grayscale continued to carry the dominant place, with merchandise recording a complete AUM of $20.8 billion, representing a 3.02% enhance in comparison with the earlier month. XBT Supplier ($1.54 billion) and 21Shares ($1.38 billion) adopted Grayscale because the market’s second and third-largest gamers.
In line with the most recent report for February 2023, the common each day mixture product volumes throughout all digital asset funding merchandise noticed a slight decline of 9.39% to $73.3 million.
In comparison with December 2022, volumes have elevated by 21.5%. Regardless of this enchancment, volumes are nonetheless down by 80.1% in comparison with February 2022, indicating the risky nature of the market.
BTC-based merchandise remained dominant when it comes to weekly internet flows, with each BTC-based merchandise and Quick BTC merchandise recording optimistic flows of $5.3 million and $4.6 million, respectively.
DCG’s resolution to promote its positions in Grayscale Belief Merchandise was pushed by its want to lift funds. Probably the most important gross sales was roughly 25% of its Ethereum Belief (ETHE) at a reduction of round 50% of the belief’s worth, in keeping with a report from the Monetary Instances cited within the report.
The total CryptoCompare’s Digital Asset Administration Evaluate report may be discovered right here.
