Driven by China’s crackdown on crypto markets and subsequent fall in the prices of cryptocurrencies, digital asset products saw a 9.5% fall in assets under management (AUM) to $40.5 billion during June so far, according to cryptocurrency market data provider, CryptoCompare.
Moreover, net outflows from digital asset investment products averaged $86 million in the first few weeks of June, the first month in the year to record positive net outflows.
So far till 21 June, bitcoin has fallen 15.1% month-to-date, while ethereum has dropped 30.3%.
By product type, bitcoin’s AUM dropped by 6.4% to $29.1 billion (now 71.9% of total AUM against 69.5% last month) while ethereum’s AUM fell 15.2% to $9.5 billion (now 23.4% of total AUM against 25.0% last month).
Digital currency investing and cryptocurrency asset management firm Grayscale’s products represented the vast majority of AUM at $32.6 billion (80.5% of total) followed by those of XBT Provider ($3.3bn, 8.1% of total) and 21Shares ($1.0bn, 2.5% of total).
In terms of product type, AUM represented by trust products (dominated by Grayscale) decreased by 9.3% to $33 billion (82.6% of total AUM).
Meanwhile, aggregate daily volumes across all digital asset investment product types have decreased by an average of 63.1% in June compared with May. Average daily volumes for June now stood at $494.4 million.
Grayscale’s Bitcoin Trust product (GBTC) regained its majority market share of trust product volume in June at 59.8%. All trust product volume fell by an average of 66.4%. Average daily volume for GBTC and ETHE stood at $257mn (down 44.9%) and $141mn (down 68.9%) respectively.
Grayscale’s Ethereum Classic Trust product (ETCG) volume fell 90.7% in June to $8.3mn, a larger decrease than any other trust product for the same period.
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