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CCData’s November Digital Asset Management Review (DAMR) is now available. This monthly report provides readers with an overview of the global digital asset investment product landscape, examining key developments across various product types and tracking their adoption by analysing assets under management, trading volumes, price performance and more.
In November, assets under management (AUM) of digital asset investment products maintained the momentum they gained in October, growing by 14.1% to $43.3bn, marking a cumulative rise of 120% in 2023. This upswing follows the growing prominence of ETF discussions, with an increasing number of institutions participating in the race for an Ether spot ETF, and the rising likelihood that a spot Bitcoin ETF will be approved.
Key Findings:
- Digital Asset AUM grew by 14.1% in November to reach $43bn, marking a cumulative rise of 120% YTD. Bitcoin-based products led with a 12.5% increase in AUM to $31.8bn (140% annual growth), followed by Ethereum products with a 17.8% monthly rise to $8.55bn (75.6% annual increase). Notably, Solana-based products surged nearly 99.9%, reaching ~$424mn in AUM.
- Substantial increase in aggregate product volumes for November. Average daily volumes grew by 35.3% to $481mn, the highest level recorded since March 2022, reflecting the current market sentiment and increased investor confidence. ProShares BITO led with a 73.5% increase to $286mn, while Grayscale's GBTC followed with a 30.1% rise to nearly $119mn. Grayscale ETHE also grew 39.8% to over $40.7mn.
- In November, the open interest for BTC futures on CME increased by 20.9% to a yearly high of $4.11bn. This surge positioned CME as the leader in market share for BTC futures, surpassing Binance's open interest of $3.76bn. The rise on CME underscores the growing institutional interest in Bitcoin, especially in anticipation of the potential approval of a spot Bitcoin ETF in the coming year.
- Since June 2023, the discount on the Grayscale Bitcoin Trust (GBTC) has been reducing, coinciding with the growing institutional interest in ETFs. The discount decreased from a peak of 45%—the highest since the trust's inception—to just 8% on November 24th, a level last observed in August 2021. This trend highlights the market's optimism regarding the approval of spot ETFs and the possibility of enhanced institutional adoption that approval could bring to the market.
Digital Asset AUM Rises 14.1% Amid Growing ETF Optimism
In November, assets under management (AUM) of digital asset investment products maintained the momentum they gained in October, growing by 14.1% to $43.3bn, and marking a cumulative rise of 120% in 2023. Average daily volumes of aggregate products also experienced a substantial increase of 35.3%, climbing to $481 million.
This recent upswing follows the growing prominence of ETF discussions, with an increasing number of institutions participating in the race for Ether spot ETF, and the rising likelihood of the approval of a Bitcoin spot ETF. The momentum in Bitcoin's price, which surpassed $38,000 on November 24th, also served as a catalyst for the rise in AUM.
SOL AUM Surges 99% in November to $424mn
In November, Bitcoin-based products continued their upward trajectory, with AUM increasing by 12.5% to approximately $31.8bn, further solidifying their dominance with a substantial annual growth of 140%.
Ethereum products followed suit with a significant monthly upswing of 17.8%, pushing their valuation to over $8.55bn, marking a 75.6% increase since the previous year. Products based on Solana recorded an extraordinary monthly surge of nearly 99.9%, propelling their AUM to roughly $424mn.
GBTC Discount Continues Shrinking
The discount associated with the Grayscale Bitcoin Trust (GBTC) has been contracting since June 2023, in line with heightened interest in ETFs narrative following BlackRock's application for a Bitcoin ETF. The discount narrowed from a high of 45%—the largest since the trust's inception—to just 8% on November 24th, a figure last seen in August 21.
This trend underscores the optimism surrounding the approval of spot ETFs and the potential for increased institutional adoption that the approval can create in the market.
CME Open Interest for BTC Futures Reaches Yearly High of $4.1bn
In addition to the increase in digital assets stock prices, the open interest for BTC futures on CME rose 20.9% to a yearly high of $4.11bn. The exchange has now attained the largest market share for open interest in BTC futures, overtaking Binance which currently has an open interest of $3.76bn.
The rise in open interest on the CME exchange highlights the increase in institutional interest in Bitcoin as the markets anticipate the potential approval of spot Bitcoin ETF next year.
