In 2022, cryptocurrency investment products assets under management (AUM) and average daily trading volume will drop significantly due to panic in the cryptocurrency market after the collapse of FTX and rumors of similar issues on other exchanges. Decreased.
Average daily trading volume fell 74.1% to $203 million in 2022 compared to $781 million in 2021. Average monthly AUM likewise decreased 39.5% to $31.9 billion from $52.8 billion in 2021.
According to CryptoCompare’s latest Digital Asset Management Review report, average weekly net outflows from crypto investment products hit $9.5 million in December, the highest since June 2022.
In December, after a slight recovery in November, average daily volume for all cryptocurrency investment products continued to decline, dropping 56.1% to reach 61.1 million as of December 20. . Total product volume is now 87% lower than its peak in January 2021, and the company says the bear market suggests he is likely to continue into 2023.
According to the report, only Bitcoin-focused investment products saw positive inflows, totaling $100,000. Also, in a December letter to investors, Grayscale Investments revealed that it was considering returning a portion of the Grayscale Bitcoin Trust (GBTC) fund to investors.
According to CryptoCompare, the letter comes after Grayscale’s request for approval of a Bitcoin Exchange Traded Fund (ETF) was denied by the Securities and Exchange Commission (SEC). The fund currently manages $10.5 billion worth of assets, and the discount to Bitcoin’s price has grown, reaching a record high of 48.9% on December 13th.
The report found that despite lower AUM and assets under management, Ethereum-based investment products showed “decent gains” in December, with 3IQ’s QETH, XBTProvider’s XETHONE, and Aim ETHH up 8.5%, respectively. It added that it performed 6.5% and 6.2%. Meanwhile, Bitcoin-based investment products QBTC and BTCC returned 7.6% and 5.3%, respectively.
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